ML13086A244
| ML13086A244 | |
| Person / Time | |
|---|---|
| Site: | Beaver Valley, Perry |
| Issue date: | 03/28/2013 |
| From: | Michael Mahoney Division of Operating Reactor Licensing |
| To: | Sena P FirstEnergy Nuclear Operating Co |
| Michael Mahoney, NRR/DORL 415-3867 | |
| References | |
| TAC MF0401, TAC MF0402, TAC MF0403 | |
| Download: ML13086A244 (5) | |
Text
UNITED STATES NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 20555*0001 March 28, 2013 Mr. Peter P. Sena, III President and Chief Nuclear Officer FirstEnergy Nuclear Operating Company 76 South Main Street Akron,OH 44320
SUBJECT:
BEAVER VALLEY POWER STATION, UNIT NOS. 1 AND 2; AND PERRY NUCLEAR POWER PLANT, UNIT NO.1 - REQUEST FOR ADDITIONAL INFORMATION RE: PARENTAL GUARANTY (TAC NOS. MF0401, MF0402, and MF0403)
Dear Mr. Hagan:
By letter dated December 17, 2012 (Agencywide Documents Access and Management System (ADAMS) Accession No. ML12363A037), FirstEnergy Nuclear Operating Company (the Guarantor), on behalf of FirstEnergy Corp. (FEN GenCo) (now FirstEnergy Nuclear Generation, LLC), provided a copy of a parental guaranty dated December 19, 2011, to the U.S. Nuclear Regulatory Commission (NRC).
FirstEnergy Nuclear Generation, LLC has a 100 percent undivided ownership interested in Beaver Valley Power Station Unit 1 and 87.2 percent of the undivided ownership of the Perry Nuclear Power Plant.
The NRC staff is reviewing your submittal and has determined that additional information is required to complete the review. The specific information requested is addressed in the enclosure to this letter. During a discussion with your staff on March 21, 2013, it was agreed that you would provide a response 120 days from the date of this letter.
The NRC staff considers that timely responses to requests for additional information help ensure sufficient time is available for staff review and contribute toward the NRC's goal of efficient and effective use of staff resources.
P.Sena
-2 If circumstances result in the need to revise the requested response date, please contact me at (301) 415-3867.
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~:~ael ~:rOject Manager Plant Licensing Branch 111-2 Division of Operating Reactor Licensing Office of Nuclear Reactor Regulation Docket Nos. 50-334, 50-412, and 50-440
Enclosure:
Request for Additional Information cc w/encl: Listserv
REQUEST FOR ADDITIONAL INFORMATION BEAVER VALLEY POWER STATION, UNIT NOS. 1 AND 2 PERRY NUCLEAR POWER PLANT, UNIT NO.1 DOCKET NOS. 50-334, 50-412, AND 50-440 By letter dated December 17, 2012 (Agencywide Documents Access and Management System (ADAMS) Accession No. ML12363A037), FirstEnergy Nuclear Operating Company (the Guarantor), on behalf of FirstEnergy Corp. (FENGenCo) (now FirstEnergy Nuclear Generation, LLC), provided a copy of a parental guaranty dated December 19, 2011, to the U.S. Nuclear Regulatory Commission (NRC or Commission).
FirstEnergy Nuclear Generation, LLC has a 100 ercent undivided ownership interested in Beaver Valley Power Station Unit 1 and 87.2 percent of the undivided ownership of the Perry Nuclear Power Plant. Based on its review of the proposed parental guarantee, the NRC needs additional information to determine if the proposed parental guarantee is in compliance with the regulation:
- 1. Item 10 of the proposed parental guaranty states that U[t]he Guarantor and FENGenCo agree that if the Guarantor fails to meet the financial test criteria at any time after this Guaranty is established, the Guarantor and FENGenCo shall send, within 90 days of the end of the fiscal year in which the Guarantor fails to meet the financial test criteria, written notice to the NRC using NRC's electronic information exchange. If FENGenCo 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 of the end of such fiscal year, the Guarantor shall provide such alternative financial assurance in the name of FENGenCo or make full payment under the Guaranty to the existing standby trust established by FENGenCo."
Regulation at Section II.C.2 of the Appendix A to 10 CFR Part 30 states:
If the parent company no longer meets the requirements of paragraph A of this section, the licensee must send notice to the Commission of intent to establish alternate financial assurance as specified in the Commission's regulations. The notice must be sent within 90 days after the end of the fiscal year for which the year-end financial data show that the parent company no longer meets the financial test requirements. The licensee must provide alternate financial assurance within 120 days after the end of such fiscal year.
In addition,Section II.B of the Appendix A to 10 CFR Part 30 states:
[T]he licensee must inform the NRC within 90 days of any matters coming to the auditor's attention which cause the auditor to believe that the data specified in the financial test should be adjusted and that the company no longer passes the test.
Enclosure
- 2 Based on the information provided in the letter, the NRC needs the following additional information to complete its review:
A. Update item 10 of the proposed parental guaranty to comply with the regulations stated above. Specifically, the licensee must provide alternate financial assurance within 120 days after the end of the fiscal year, instead of the 180 days in the proposed Guaranty, in which the Guarantor fails to meet the financial test criteria.
B. In addition to the notification to be sent to the NRC 90 days the end of the fiscal year which the Guarantor fails to meet the financial test criteriq add the requirement that licensee will inform the NRC within 90 days of any matters coming to the auditor's attention which cause the auditor to believe that the data specified in the financial test should be adjusted and that the company no longer passes the test.
- 2. Item 14 of the proposed parental guaranty states that U[t]he Guarantor agrees to remain bound under this Guaranty and financial test provisions for as long as FENGenCo must comply with the applicable financial assurance requirements of 10 CFRPart 50."
Section III. C of the Appendix A to 10 CFR Part 30 states:
The parent company guarantee and financial test provisions must remain in effect until the Commission has terminated the license, accepted in writing the parent company's alternate financial assurances, or accepted in writing the licensee's financial assurances.
Based on the information provided in the application the NRC needs the following additional information to complete its review:
A. Update item 14 to require the Guarantor to remainbound under this Guaranty and financial test provisions until the Commission has terminated the license, accepted in writing the parent company's alternate financial assurances, or accepted in writing the licensee's financial assurance.
P.Sena
-2 If circumstances result in the need to revise the requested response date, please contact me at (301) 415-3867.
Sincerely, 1RA 1 Michael Mahoney, Project Manager Plant Licensing Branch 111-2 Division of Operating Reactor Licensing Office of Nuclear Reactor Regulation Docket Nos. 50-334, 50-412, and 50-440
Enclosure:
Request for Additional Information cc w/encl: via Listserv DISTRIBUTION:
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- .!Bowen MMahoney DATE 3/28/13 3/28/13 3/13/13 3/28/13 3/3/28/13 OFFICIAL RECORD COPY