ML12142A317
| ML12142A317 | |
| Person / Time | |
|---|---|
| Site: | Limerick  |
| Issue date: | 05/21/2012 |
| From: | Simpson P Exelon Generation Co, Exelon Nuclear |
| To: | Office of Nuclear Reactor Regulation, Document Control Desk |
| Shared Package | |
| ML121420477 | List: |
| References | |
| RS-12-088 | |
| Download: ML12142A317 (18) | |
Text
Nuclear Exelon Nuclear Security, LLC www.exeloncorp.com 4300 Winfield Road Warrenville, IL bo555 10 CFR 50.75(f)(1)
RS-12-088 May 21, 2012 U. S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington, DC 20555-0001 Limerick Generating Station, Unit 1 Facility Operating License Nos. NPF-39 NRC Docket No. 50-352
Subject:
Response to Request for Additional Information Regarding Status of Decommissioning Funding Assurance
References:
1.
Letter from Patrick R. Simpson (Exelon Generation Company, LLC) to U. S. NRC, "2011 Report on Status of Decommissioning Funding for Reactors," dated March 31, 2011 2.
Letter from Patrick R. Simpson (Exelon Generation Company, LLC) to U. S. NRC, "Response to Request for Additional Information Related to 2011 Report on Status of Decommissioning Funding," dated July 27, 2011 3.
Letter from Patrick R. Simpson (Exelon Generation Company, LLC) to U. S. NRC, "Response to Request for Additional Information Regarding Status of Decommissioning Funding Assurance," dated February 23, 2012 4.
Letter from Richard B. Ennis (U. S. NRC) to Michael J. Pacilio (Exelon Generation Company, LLC), "Limerick Generating Station, Unit No. 1 - Request for Additional Information Regarding Status of Decommissioning Funding Assurance," dated April 20, 2012 In Reference 4, the NRC requested additional information with respect to the decommissioning funding assurance status for Limerick Generating Station, Unit 1,
May 21, 2012 U. S. Nuclear Regulatory Commission Page 2 submitted by Exelon Generation Company, LLC (EGC) in Reference 1, and supplemented with information supplied in References 2 and 3.
The requested information is contained in the Attachments to this letter.
There are no new regulatory commitments made in this letter.
If you have any questions about this letter, please contact me at (630) 657-2823.
Respectfully, Patrick R. Simpson Manager - Licensing Exelon Generation Company, LLC cc:
Regional Administrator - NRC Region I NRC Senior Resident Inspector - Limerick Generating Station :
Response to Request for Additional Information :
Limerick Generating Station, Unit 1 Calculation of Certified Minimum Decommissioning Funding Assurance :
Calculations Used to Determine the Amount of Parent Guarantee for Limerick Generating Station, Unit 1 :
Letter from Chief Financial Officer of Corporate Parent :
Amended Parent Company Guarantee for Limerick Generating Station, Unit 1
ATTACHMENT 1 RESPONSE TO NRC REQUEST FOR ADDITIONAL INFORMATION RAI #1: Minimum DFA calculation Within Exelon's response, Exelon reported, as of December 31, 2011, an amount of decommissioning funding estimated to be required under 10 CFR 50.75(b) and (c). The amount of decommissioning funds estimated was greater than the amount calculated by the NRC staff for LGS, Unit 1. Provide the labor, energy and burial factors used in Exelon's calculation of the minimum requirement for DFA for LGS, Unit 1; address how the calculation methodology used deviated from that described in NUREG-1307, "Report on Waste Burial Charges," Revision 14; and provide a statement certifying to the minimum amount of DFA provided.
Response to RAI #1 The amount of decommissioning funds estimated to be required ($660.4M) was calculated in the same manner as in the Reference 1 report for Limerick Generating Station (LGS), Unit 1, and described in the response to Question 1 of Reference 2, except that updated factors were used to be consistent with the latest available information.
The labor and energy factors EGC used in calculating the amount of decommissioning funds estimated to be required are consistent with the factors described in NUREG-1307, "Report on Waste Burial Charges," Revision 14 (adjusted as of December 31, 2010). The waste burial factor EGC used in calculating the amount of decommissioning funds estimated to be required is also consistent with the factors described in NUREG-1307, Revision 14, except that EGC escalated the waste burial factors to ensure that they reflect current rates as of the reporting date.
The current labor cost indices EGC used in calculating the amount of decommissioning funds estimated to be required were obtained from the Employment Cost Indexes, published by the U. S. Department of Labor, Bureau of Labor Statistics (BLS).
Specifically, EGC used the Employment Cost Index for total compensation for private industry workers, Northeast region. The labor adjustment factors were calculated according to Section 3.1 of NUREG-1307, Revision 14, using third quarter 2011 data.
Table 1 shows the data used for the labor adjustment calculation.
Table 1: Labor Adjustment Factors 3Q2011 Base Labor Index Lx Adjustment Region licable Site Series ID Number Factor Lx Northeast Limerick CIU20100000002101 115.7 2.16 2.499 The energy cost indices EGC used to calculate the value reflected in the amount of decommissioning funds estimated to be required were obtained from "Producer Price Index (PPI) - Commodities," published by the U. S. Department of Labor, BLS.
Specifically, EGC used the PPIs for industrial electric power (WPU0543) and light fuel oils (WPU0573). The energy adjustment factors were calculated according to Section 1
3.2 of NUREG-1307, Revision 14, using preliminary November 2011 data. Table 2 shows the data used for this calculation.
Table 2: Energy Adjustment Factors WPU0543 - January 1986 (base value) 114.2 WPU0573 - January 1986 (base value) 82.0 WPU0543 - November 2011 relimina value) 205.1 WPU0573 - November 2011 (preliminary value) 323.7 Industrial electric power adjustment factor - P, 1.796 Light fuel oil adj ustment factor - F, 3.948 Energy Adjustment Factor (BWR) -- E,,BWR 2.786 EGC obtained the waste burial adjustment factors from Table 2.1 of NUREG-1307, Revision 14, based on 2010 data. For the adjustment factors, EGG assumed direct disposal with vendors, consistent with current waste disposal practices at EGC and consistent with typical waste disposal practices during decommissioning. EGG also assumed that the waste burial indices published in NUREG-1 307 reflect mid-year (2010) indices, and hence added an appropriate escalation factor to the waste burial indices to ensure that the indices reflect current rates as of the reporting date of December 31, 2011. The escalation factor used is conservative (higher) as compared to the escalation projected for burial costs used in our decommissioning cost estimates.
EGC used an annual escalation index of 3.5% applied to the period June 30, 2010 through December 31, 2011. Table 3 summarizes the data used for the calculation of the waste adjustment factors:
Table 3: Waste Adjustment Factors Waste Escalated Waste Reactor Applicable Adjustment Adjustment LLW Burial Site Type Site Factor Br Factor Generic LLW BWR Limerick 12.540 13.205 Disposal Site EGC acknowledges that its methodology results in an amount of decommissioning funds estimated to be required that is greater than the amount required using the values in the NRC guidance. EGC used the methodology described above so that the amount of the additional funding assurance to be provided by the parent company guarantee would be greater than the amount required by the NRC regulation and guidance, and allows for additional margin to avoid making changes to the parent company guarantee amount in the event of small economic fluctuations.
For the minimum amount of decommissioning funding assurance provided as of December 31, 2011, EGC certifies to the decommissioning minimum amount required per 10 CFR 50.75(b) and (c). A calculation of this amount is contained in Attachment 2.
The labor factors used for the certification in Attachment 2 are based on fourth quarter values, the energy factors are based on December 2011 values, and the waste burial factor is the unescalated NUREG-1307 value.
For LGS, Unit 1, EGC certifies that the minimum amount of DFA provided is $639.1 M.
2
RAI #2: Assumptions Please provide the following:
a.
Provide the assumptions used regarding the rates of escalation in decommissioning costs, rates of earnings on decommissioning funds, and rates of any other factors used in funding projections.
- b. Provide an annual schedule of amounts authorized to be collected by the Pennsylvania Public Utilities Commission (PAPUC) as of December 31, 2011.
c.
Provide the citations for the filing with the PAPUC which contain Exelon's request for an increase in the amounts to be collected for decommissioning LGS, Unit 1.
Response to RAI #2
- a. The calculation of funding projections for LGS, Unit 1 assumes a 3% real rate of return. The Pennsylvania Public Utility Commission (PaPUC) approved a 3% real rate of return as part of the approval of the restructuring plan for PECO Energy Company as allowed by 10 CFR 50.75(e)(1)(ii) (Letter from J.J. McNulty (PaPUC),
"Approval of Restructuring Plan for PECO Energy Company under Section 2806 of the Public Utility Code; Docket No. R-00973953.")
- b. The annual schedule of amounts authorized to be collected by PECO through the PaPUC as of December 31, 2011, is the same as reported in Reference 1. The annual amounts authorized to be collected for LGS, Unit 1 is $7,170M on an annual basis through 2023.
PECO Energy Company submitted its updated request for the amounts to be collected from ratepayers beginning January 1, 2013, in its letter to Rosemary Chiavetta (PaPUC), "Docket No. R-00973953 -- Nuclear Decommissioning Cost Adjustment (NDCA)," dated March 30, 2012. That letter is available on the PaPUC website (www.puc.state.pa.us).
RAI #3: Calculation of Parent Guarantee Amount Provide the details of the calculations used to determine the amount of the parent company guarantee (PCG). In addition to hard copy suitable for entry into the docket, provide the calculation spreadsheets in electronic form, including the formulas, in a form suitable for the NRC to analyze and verify the information, and a written description of the calculations performed.
Response to RAI #3 The details of the calculations used to determine the amount of the PCG are provided in. These calculations are also provided in electronic form.
EGC's calculation of the minimum ($660.4M) used to calculate the amount of the parent company guarantee allowing for margin, and the indices used for this calculation, are 3
described in the Response to RAI #1. The trust fund amount is the value in the decommissioning trust fund for LGS, Unit 1 as of December 31, 2011. The value of future contributions is based on the currently approved PECO collections for 2012
($7,170M), and the proposed amount of annual collections ($8,041 M) for the remaining approved time period of collections (2013 - 2023) on file with, but not yet approved by, the PaPUC. Note that the proposed collection amount used in this calculation was based on a preliminary calculation that reduced the amount of collections deposited into the fund by the projected amount of deferred taxes. Based on the actual filing with the PaPUC, the proposed amount of future collections for LGS, Unit 1 is $8,232M. The future value includes a 3% real rate of return on these collections from the time that they are collected until the shutdown date of LGS, Unit 1. The earnings credit through shutdown is calculated by assuming a 3% real rate of return on the current trust fund value through the shutdown date.
The projected trust fund amount at shutdown is calculated by adding the current trust fund amount, the future value of contributions, and the earnings credit through shutdown. The decommissioning earnings credit is calculated by assuming a 3% real rate of return on one half of the trust fund value at shutdown. This calculation accounts for a pro rata credit during the immediate dismantlement period (the first seven years after shutdown) and reflects the expected cash flow of expenditures during this period, as described in Regulatory Guide 1.159, Section 2.2.8.3. The total projected trust fund amount is calculated by adding the projected trust fund amount at shutdown and the decommissioning period earnings credit.
Finally, the difference between the total projected trust fund amount and EGC's minimum amount is the amount of the parent company guarantee EGG obtained from Exelon Corporation.
RAI #4: Limitations of Collections for Decommissioning Exelon's Form 10-K, filed with the U.S. Securities and Exchange Commission on February 9, 2012, states, on page 291:
Any shortfall of funds necessary for decommissioning, determined for each generating station unit, is ultimately required to be funded by Generation. Generation has recourse to collect additional amounts from PECO customers related to a shortfall of NDT funds for the former PECO units, subject to certain limitations and thresholds, as prescribed by an order from the PAPUC. Generally, PECO will not be allowed to collect amounts associated with the first $50 million of any shortfall of trust funds, on an aggregate basis for all former PECO units, compared to decommissioning obligations, as well as 5% of any additional shortfalls.
This initial $50 million and up to 5% of any additional shortfalls would be borne by Generation.
Provide financial assurance for LGS, Unit 1 to cover the decommissioning costs that PAPUC has excluded from collection from PECO's customers.
4
Response to RAI #4 The shortfalls referenced in Exelon Corporation's Form 10-K apply only to a situation where there is a shortfall in actualdecommissioning expenses that occurs during the decommissioning period. During this decommissioning period, PECO can recover additional amounts from ratepayers, subject to the limitations described in the 10-K filing and the PaPUC Order.
The funding assurance for LGS, Unit 1 is provided through the external sinking fund amount ($256.6M as of December 31, 2011, plus the future value of collections) and the
$115M parent company guarantee. With these two mechanisms, the amount of funding required for decommissioning is more than covered. Hence, there is no expected shortfall during the decommissioning period, and there is no additional financial assurance required for the excluded costs, since no excluded costs are expected.
RAI #5: Parent Company Guarantee Amount The PCG agreement and supporting documents deviate from the guidance of Regulatory Guide (RG) 1.159, Revision. 2 (ADAMS Accession No. ML112160012).
Provide the following revisions to the PCG and supporting documents:
Option 1:
- a. How Exelon deviated from RG 1.159 in relation to the information provided; and
- b. How the information provided by Exelon is at least equivalent to the guidance in RG 1.159.
Or Option 2:
- a. Letter from the chief financial officer of corporate parent, including cost estimates and data from audited financial statements (see Appendix A-6.1 to RG 1.159); and
- b. The date of issuance and date of maturity of the most recent bond issuance used to establish the bond ratings reported in the financial test (see Appendix A-6-3 to RG 1.159); and c.
Exelon Corporation is not a licensee and does not have authority to carry out decommissioning activities. Remove PCG Paragraph 7.a from the PCG (see Appendix A-6.5 to RG 1.159); and
- d. Add a provision to the PCG to state, "The Guarantor agrees to submit revised financial statements, financial test data, and a special auditor's report and reconciling schedule to the NRC annually within 90 days of the close of the parent Guarantor's fiscal year" (see Appendix A-6.5, paragraph (8) to RG 1.159).
5
Response to RAI #5 Even though Regulatory Guide 1.159 is not binding and enforceable, EGC did not intend to deviate from the guidance in Regulatory Guide 1.159. The form of the parent company guarantee was taken from a previously approved parent company guarantee.
In response to this question, EGC has selected Option 2 described above. The certification letter from the Exelon Corporation Chief Financial Officer is contained in. Note that this letter also includes an updated financial test. The updated financial test includes the date of issuance and date of maturity of the bond issuance used to establish the bond ratings. It also indicates what data is derived from Exelon Corporation's independently audited, year-end financial statement. There are no changes to the numbers or conclusions of the financial test, and it is still based on the December 31, 2011 financial statement. Therefore, the Independent Auditor's report provided in Reference 3 is still applicable.
The form of the financial guarantee has been modified to address the suggested changes in items c. and d. of Option 2 described above. The amended parent company guarantee is included in Attachment 5. The form of the parent company guarantee is now consistent with the guidance in Regulatory Guide 1.159.
6
ATTACHMENT 2 LIMERICK GENERATING STATION, UNIT 1 CALCULATION OF CERTIFIED MINIMUM DECOMMISSIONING FUNDING ASSURANCE (dollars, millions)
Plant Name:
Limerick 1 Docket Number:
50-352 Region:
Northeast Month:
Day:
Year:
Dec-2011 Date of Operation:
12 31 2011 WPU0543 WPU0573 Termination of Operations:
10 26 2024 204 301.5 BWRfPWR BWR MWth 3458 1986$
ECI Base Lx A
Lx f
Px I Fx I
B Ex I C I Bx
$135.0 116.1 2.160 0.650 2.508 11.786 3.677 0.130 2.656 0.220 112.54 NRC Minimum:
$639.1 Note: Calculation of NRC Minimum based on formula from 10 CFR 50.75(c) for a BWR using December 2011 (4th quarter) index values.
ATTACHMENT 3 CALCULATIONS USED TO DETERMINE THE AMOUNT OF PARENT GUARANTEE FOR LIMERICK GENERATING STATION, UNIT 1 (dollars, thousands)
Required Minimum' (1)
Current Trust Fund Value 256,541 Trust Fund Amount (2)
Value of Future Contributions 115,444 Value of Future Contributions (2a)
Shutdown Date 10/26/2024 Earnings Credit through shutdown (3)
Years to Shutdown 12.83 Projected Trust Fund Amount at shutdown (4) _ (2) + (3)
Decommissioning Period Earnings Credit (5)
Total Projected Trust Fund Amount (6) _ (4) + (5)
Real Rate of Return 3.00%
Difference (7) _ (6) - (1) 660,390 256,541 115,444 117,424 489,409 56,251 545,660 (114,730)
"Required minimum" for purposes of this calculation refers to EGC's calculation of the minimum amount using an escalated waste burial factor and other factors as explained in Response to RAI #1.
ATTACHMENT 4 LETTER FROM CHIEF FINANCIAL OFFICER OF CORPORATE PARENT
I am the chief financial officer of Exelon Corporation, a corporation organized under the laws of the Commonwealth of Pennsylvania. This certification is in support of this firm's use of the financal test to demonstrate financial assurance, as specified in Title 10, Part 50, of the Code of Federal Regulations (10 CFR Part 50).
Exelon Corporation guarantees, through the parent company guarantee submitted to demonstrate compliance under 10 CFR Part 50, the decommissioning of the following facility owned or operated by Exelon Generation Company, LLC, a subsidiary of Exelon Corporation. The current cost estimates for decommissioning, and the amounts being guaranteed, are shown below:
Current Cost Amount Being Name of Facility Location of Facility Estimate Guaranteed Limerick Generating Station, Unit 1 3146 Sanatoga Rd
$660.4M
$115M Facility Operating License No.NPF-39 Pottstown, PA 19464 Exelon Corporation is required to file a Form 10K with the U.S. Securities and Exchange Commission for the latest fiscal year.
This fiscal year of Exelon Corporation ends on December 31. The figures on the attached documentation of the required financial tests marked with an asterisk are derived from Exelon Corporation's independently audited, year-end financial statements and footnotes for the latest completed fiscal year, ended December 31, 2011.
I hereby certify,that the content of this letter is true and correct to the best of my knowTedge.
I Jonathan W Thayer Executive Vice President aid Chief Financial Officer MayI7, 2012
Exelon Corporation Limerick Unit 1 NRC Regulation Appendix A to Part 30
- Denotes items derived from Exelon's 2011 Form 10-K Financial Test (Dollars, in millions)
Paragraph A.2 (i) Current rating for parent company's most recent bond issuance of AAA, AA, A, or BBB as issued by Standard and Poor's or AAA, AA, A, or BAA as issued by Moody's Exelon's Current Senior Unsecured Debt Ratings:
Current S&P BBB-Moody's Baal Meet criteria (YIN)?
YES A - Represents the current senior unsecured debt ratings as of December 31, 2011 for Exelon's 2006 Senior Unsecured Notes maturing in 2015 and 2035 maturing in 2015 and 2035.
(ii)Tangible net worth each at least six times the current decommissioning cost estimates for the total of all facilities or parts thereof (or prescribed amount if a certification is used), or, for a power reactor licensee, at least six times the amount of decommissioning funds being assured by a parent company guarantee for the total of all reactor units or parts thereof (Tangible net worth shall be calculated to exclude the net book value of the nuclear unit(s))
Total Shareholders' Equity Goodwill Intangible Assets Net Book Value of Limerick Station Tangible Net Worth The amount of decommissioning funds being assured by parent guarantee for the total of all reactor units or parts thereof Meet criteria (YIN)?
(iii)Tangible net worth of at least $10 million Total Shareholders' Equity Goodwill Intangible Assets Net Book Value of Limerick Station Tangible Net Worth Meet criteria (YIN)?
(iv) Assets located in the United States amounting to at least 90 percent of the total assets or at least six times the current decommissioning cost estimates for the total of all facilities or parts thereof (or prescribed amount if a certification is used), or, for a power reactor licensee, at least six times the amount of decommissioning funds being assured by a parent company guarantee for the total of all reactor units or parts thereof.
A A
December 31, 2011 14,385 (2,625)
(463)
(754) 10,543 115.0 6
690 YES December 31, 2011 14.385 (2,625)
(463)
(754) 10,543 YES Assets located in the Unites States The amount of decommissioning funds being assured by parent guarantee for the total of all reactor units or parts thereof December 31, 2011 55,092 Meet criteria (Y/N)?
YES
ATTACHMENT 5 AMENDED PARENT COMPANY GUARANTEE FOR LIMERICK GENERATING STATION, UNIT 1
AMENDED PARENT GUARANTEE NRC DECOMMISSIONING FUNDING ASSURANCE Guarantee made February_21,, 2012 by Exelon Corporation, a corporation organized under the laws of the Commonwealth of Pennsylvania, herein referred to as "guarantor," to the U.S.
Nuclear Regulatory Commission (NRC), on behalf of our subsidiary Exelon Generation Company, LLC (ExGen) of 300 Exelon Way, Kennett Square, PA 19348, obligor and amended May 1, 2012.
Recitals
- 1. The guarantor has full authority and capacity to enter into this guarantee pursuant to its bylaws, articles of incorporation, and the laws of Pennsylvania, its State of incorporation.
Guarantor has approval from its Board of Directors to enter into this guarantee.
- 2. This guarantee is being issued so that ExGen will be in compliance with regulations issued by the NRC, an agency of the U.S. Government, pursuant to the Atomic Energy Act of 1954, as amended and the Energy Reorganization Act of 1974.
The NRC has promulgated regulations in Title 10, Chapter I of the Code of Federal Regulations, Part 50, which require that a holder of, or an applicant for, a license issued pursuant to 10 CFR Part 50 provide assurance that funds will be available when needed for required decommissioning activities.
- 3. This guarantee is issued to provide financial assurance for a portion of the costs of decommissioning activities for Limerick Station. Unit 1 as required by 10 CFR Part 50. The decommissioning costs for which this guarantee is issued are: $115,000,000.
- 4. The guarantor meets or exceeds the financial test criteria as stated in NRC 10 CFR 30 Appendix A, Section II, and will comply with the notification requirements as specified in 10 CFR Part 50 and Appendix A to Part 30.
5.
The guarantor is the sole member of Exelon Ventures Company, LLC, which is the sole member of Exelon Generation Company, LLC, the holder of NRC License No. NPF-39 for Limerick Station, Unit 1, P.G. Box 2300, Sanatoga, Pennsylvania 19464-2300.
- 6. Decommissioning activities as used below refer to the activities required by 10 CFR Part 50 for decommissioning of the facility identified above.
7.
For value received, and pursuant to the authority delegated to the officers of guarantor by its Board of Directors, the guarantor guarantees to the NRC that if ExGen fails to perform the required decommissioning activities, as required by License No. NPF-39. due to lack of funds, the guarantor shall either, as the guarantor shall determine:
a.
provide all funds necessary, up to the amount of this guarantee specified in Section 3, to carry out the required activities, or b.
set up a trust fund in favor of ExGen in the amount of these current cost estimates or guarantee amount for these activities.
- 8. The guarantor shall assure that its independent accountant submits revised financial statements and financial test data, and performs the review specified in NRC 10 CFR 30 Appendix A Section II, B and C. and notify the NRC as required by these sections. The guarantor agrees to submit revised financial statements, financial test data, and a special auditor's report and reconciling schedule to the NRC annually within 90 days after the close of the guarantor's fiscal year.
9.
The guarantor and ExGen agree that if the guarantor fails to meet the financial test criteria as stated in. NRC 10 CFR 30, Appendix A, Section II at any time after this guarantee is established, the guarantor and licensee shall send, within 90 days after the end of the fiscal year in which the guarantor fails to meet the financial test criteria, by certified mail, notice to the NRC. If ExGen fails to provide alternative financial assurance as specified in 10 CFR Part 50, as applicable, and obtain written approval of such assurance from the NRC within
180 days after the end of such fiscal year, the guarantor shall provide such alternative financial assurance in the name of ExGen or make full payment under this guarantee to a standby trust established by ExGen.
- 10. Independent of any notification under paragraph 9 above, if the NRC determines for any reason that the guarantor no longer meets the financial test criteria or that it is disallowed from continuing as guarantor for the facility under License No. NPF-39, the guarantor agrees that within 90 days after being notified by the NRC of such determination, an alternative financial assurance mechanism as specified in 10 CFR Part 50 as applicable, shall be established by the guarantor in the name of ExGen unless ExGen has done so.
- 11. The guarantor as well as its successors and assigns agree to remain bound jointly and severally under this guarantee notwithstanding any or all of the following: amendment or modification of license or NRC-approved decommissioning funding plan for that facility, the extension or reduction of the time of performance of required' activities, or any other modification or alteration of an obligation of the licensee pursuant to 10 CFR Part 50.
- 12. The guarantor agrees that it will be liable for all litigation costs incurred by ExGen or the NRC in any successful effort to enforce this guarantee against the guarantor-
- 13. The guarantor agrees to remain bound under this guarantee for as long, as ExGen must comply with the applicable financial assurance requirements of 10 CFR Part 50, for the previously lhted facility except that the guarantor may cancel this guarantee by sending certified mail to the NRC and to ExGen, such cancellation to become effective no earlier than 120 days after receipt of such notice by both the NRC and ExGen as evidenced by the return receipts. If the licensee fails to provide alternative financial assurance as specified in 10 CFR Part 50, as applicable, and obtain written approval of such assurance within 120 days after the sending of the above notice by the guarantor, the guarantor shall provide such alternative financial assurance.
- 14. The guarantor expressly waives notice of acceptance of this guarantee by the NRC or by ExGen. The guarantor also expressly waives notice of amendments or modification of the decommissioning requirements and of amendments or modifications of the license.
- 15. If the guarantor files annual financial reports with the U.S. Securities and Exchange Commission, then it shall promptly submit them to the NRC during each year in which this guarantee is in effect.
- 16. This Amended Parent Guarantee amends and supersedes the Parent Guarantee made on February 21,2012.
I herby certify that this guarantee is true and correct to the best of my knowledge.
Effective date:
Mo 20 1 14 Jonathan W. Thayer Efecutive Vice P°esident and..Chief Financial Officer Signature of witness or no Brace G.
Secretary Signature of witness or notary: