ML13186A038

Electronic Transmission, Draft Request for Additional Information Regarding the 2013 Decommissioning Funding Status Report

ML13186A038
Person / Time
Site:	Beaver Valley
Issue date:	07/08/2013
From:	Peter Bamford Plant Licensing Branch 1
To:	Veronica Rodriguez Plant Licensing Branch 1
Bamford P
References
TAC MF2162, TAC MF2163
Download: ML13186A038 (4)

Text

July 8, 2013 MEMORANDUM TO: Veronica Rodriguez, Acting Chief Plant Licensing Branch I-2 Division of Operating Reactor Licensing Office of Nuclear Reactor Regulation FROM: Peter Bamford, Project Manager /ra/

Plant Licensing Branch I-2 Division of Operating Reactor Licensing Office of Nuclear Reactor Regulation

SUBJECT:

BEAVER VALLEY POWER STATION, UNIT NOS. 1 AND 2 - ELECTRONIC TRANSMISSION, DRAFT REQUEST FOR ADDITIONAL INFORMATION REGARDING THE 2013 DECOMMISSIONING FUNDING STATUS REPORT (TAC NOS. MF2162 AND MF2163)

The attached draft request for additional information (RAI) was transmitted by electronic transmission on July 2, 2013, to Mr. Phil Lashley, at FirstEnergy Nuclear Operating Company, LLC (FENOC, the licensee). This draft RAI was transmitted to facilitate the technical review being conducted by the Nuclear Regulatory Commission (NRC) staff and to support a conference call (if needed) with FENOC in order to clarify the licensees submittal of the Beaver Valley Power Station Decommissioning Funding Status Report for the year ending December 31, 2012. The draft RAI is related to the licensees submittal dated March 25, 2013.

The draft questions were sent to ensure that they were understandable, the regulatory basis was clear, and to determine if the information requested was previously docketed. This memorandum and the attachment do not represent an NRC staff position.

Docket Nos. 50-334 and 50-412

Enclosure:

Request for Additional Information

July 8, 2013 MEMORANDUM TO: Veronica Rodriguez, Acting Chief Plant Licensing Branch I-2 Division of Operating Reactor Licensing Office of Nuclear Reactor Regulation FROM: Peter Bamford, Project Manager /ra/

Plant Licensing Branch I-2 Division of Operating Reactor Licensing Office of Nuclear Reactor Regulation

SUBJECT:

BEAVER VALLEY POWER STATION, UNIT NOS. 1 AND 2 - ELECTRONIC TRANSMISSION, DRAFT REQUEST FOR ADDITIONAL INFORMATION REGARDING THE 2013 DECOMMISSIONING FUNDING STATUS REPORT (TAC NOS. MF2162 AND MF2163)

The attached draft request for additional information (RAI) was transmitted by electronic transmission on July 2, 2013, to Mr. Phil Lashley, at FirstEnergy Nuclear Operating Company, LLC (FENOC, the licensee). This draft RAI was transmitted to facilitate the technical review being conducted by the Nuclear Regulatory Commission (NRC) staff and to support a conference call (if needed) with FENOC in order to clarify the licensees submittal of the Beaver Valley Power Station Decommissioning Funding Status Report for the year ending December 31, 2012. The draft RAI is related to the licensees submittal dated March 25, 2013.

The draft questions were sent to ensure that they were understandable, the regulatory basis was clear, and to determine if the information requested was previously docketed. This memorandum and the attachment do not represent an NRC staff position.

Docket Nos. 50-334 and 50-412

Enclosure:

Request for Additional Information DISTRIBUTION:

Public RidsNrrPMBeaverValley Resource LPL1-2 R/F Accession No.: ML13186A038

• via memo OFFICE LPL1-2/PM NRR/IFIB/BC NAME PBamford CRegan DATE 7/8/2013 6/4/2013 OFFICIAL RECORD COPY

DRAFT REQUEST FOR ADDITIONAL INFORMATION REGARDING 2013 DECOMMISSIONING FUNDING STATUS REPORT FIRST ENERGY NUCLEAR OPERATING COMPANY BEAVER VALLEY POWER STATION, UNITS 1 AND 2 DOCKET NOS. 50-334 AND 50-412 By letter dated March 25, 2013 (Agencywide Documents Access and Management System (ADAMS) Accession Number ML13084A374), FirstEnergy Nuclear Operating Company (FENOC, the licensee) submitted the 2013 Decommissioning Funding Status report for Beaver Valley Power Station (BVPS), Units 1 and 2, as required under Title 10 of the Code of Federal Regulations (10 CFR) Paragraph 50.75(f)(1). The U.S. Nuclear Regulatory Commission (NRC) staff is currently reviewing the submittal and has determined that the additional information requested below is needed to complete its review.

1. Per 10 CFR 50.75(f)(1), licensees must identify the amount accumulated to the end of the calendar year preceding the date of the report. This actual amount is dedicated for activities that relate to the definition of decommission, as specified in 10 CFR 50.2. By letter dated March 25, 2013, FENOC provided the amount accumulated in the decommissioning trust fund at the end of the calendar year preceding the date of the report for items included in 10 CFR 50.75(b) and (c).

The NRC staff requests that FENOC indicate what portion of the accumulated fund balances are for radiological decommissioning activities only. Specifically, FENOC should indicate whether any of the $250,935,980 for BVPS, Unit 1, and $320,196,005 for BVPS, Unit 2, is for non-radiological decommissioning costs such as spent fuel management or other non-radiological decommissioning activities.

2. In its March 25, 2013, submittal, FENOC recognized that a shortfall exists for BVPS, Unit 1, when the existing trust balances and assumed earnings are compared with the NRC formula amount. FENOC reported that when the BVPS, Unit 1 portion of the then current $95 million Parent Guarantee is included in the calculation, the remaining shortfall is $14,112,255. To resolve the shortfall, FENOC indicated that it will obtain a Parent Guarantee in accordance with 10 CFR 50.75(b)(2) and (b)(3) within 90 days of the date of its March 25, 2013, submittal. Per 10 CFR 50.75(d)(2)(ii) and 50.75(e)(1)(iii)(B), financial assurance may be provided by Parent Company Guarantee.

By letter dated March 29, 2013 (ADAMS Accession No. ML13091A057), FENOC provided information on annual financial test information for its Parent Company Guarantee, and stated, The test also provides assurance for a $125 million replacement PG [Parent Guarantee] for the current $95 million PG for the power plants. The $125 million replacement PG is expected to be in place by the end of the second quarter 2013.

By letter dated June 18, 2013 (ADAMS Accession No. ML13169A262), FENOC stated that it recognized that a shortfall existed for FENGenCo for Beaver Valley Power

DRAFT Station, Unit No. 1, and Perry Nuclear Power Plant. To resolve the shortfall, FENOC obtained a $125 million amended and restated parental guaranty. Further, FENOC stated that the amended and restated $125 million parental guaranty replaces the existing $95 million parental guaranty.

However, it remains unclear what dollar amount, or portion, of the current $125 million Parent Guarantee provides for BVPS, Unit 1 decommissioning financial assurance.

Therefore, please provide details that reflect the dollar amount of the portion of the current $125 million Parent Guarantee that is being applied to the BVPS, Unit 1 decommissioning funding requirement.