ML14085A019

Funding Status Report for Managing Irradiated Fuel and GTCC Waste

ML14085A019
Person / Time
Site:	Yankee Rowe
Issue date:	03/11/2014
From:	Pizzella C Yankee Atomic Electric Co
To:	Document Control Desk, Office of Nuclear Material Safety and Safeguards
References
BYR 2014-015
Download: ML14085A019 (6)

Text

~~~ YANKEE ATOMIC ELECTRIC COMPANY 49 Yankee Road, Rowe, Massachusetts 01367 March 11, 2014 BYR 2014-015 10 CFR 50.4 10 CFR 50.82(a)(8)(vii)

ATTN: Document Control Desk U.S. Nuclear Regulatory Commission Washington, DC 20555 - 0001 Yankee Atomic Electric Company Yankee Nuclear Power Plant Independent Spent Fuel Storage Installation NRC License No. DPR-3 (NRC Docket Nos.50-029 and 72-31)

Subject:

Funding Status Report for Managing Irradiated Fuel and GTCC Waste On February 26, 1992, Yankee Atomic Electric Company (YAEC) informed the USNRC that the Board of Directors of YAEC had decided to permanently cease operations at the Yankee Nuclear Power Plant and that fuel had been permanently removed from the reactor (Reference 1). In accordance with 10 CFR 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. On August 10, 2007, the NRC released most of the formerly licensed land for unrestricted use, shrinking the licensed land to that utilized to support the Independent Spent Fuel Storage Installation (ISFSI) (Reference 2). Presently, YAEC is storing irradiated fuel and Greater than Class C (GTCC) waste on site until the Department of Energy (DOE) satisfies its contractual obligations to take title and possession of the spent fuel and GTCC waste and remove them from the site.

In Attachment 1, YAEC provides the attached Funding Status Report for Managing Irradiated Fuel and GTCC Waste at the Yankee Nuclear Power Plant ISFSI to comply with 10 CFR 50.82(a)(8)(vii).

This letter contains no regulatory commitments.

If you have any questions regarding this letter, please do not hesitate to contact me at (860) 267-6426 x304.

Respectfully, Carea M. PizzellaCi Vice President, Chief Financial Officer, and Treasurer

Yankee Atomic Electric Company BYR 2014-015\March 11, 2014\Page 2

Attachment:

1. Funding Status Report for Managing Irradiated Fuel and GTCC Waste at the Yankee Nuclear Power Plant Independent Spent Fuel Storage Installation (Status as of 12/31/2013)

References:

1. A. C. Kadak (YAEC) letter to USNRC, "Permanent Cessation of Power Operations at the Yankee Nuclear Power Station," BYR-92-024, dated February 26, 1992

2. USNRC letter to Yankee Atomic Power Company, "Yankee Nuclear Power Station - Release of Land from Part 50 License," dated August 10, 2007 cc: W. M. Dean, NRC Region I Administrator M. S. Ferdas, Chief, Decommissioning Branch, NRC, Region 1 J. Goshen, NRC Project Manager J. Giarrusso, Planning, Preparedness & Nuclear Section Chief, MEMA J. Cope-Flanagan, Assistant General Counsel, MDPU J. Reyes, State of Massachusetts Office of the Attorney General

BYR 2014-015 ATTACHMENT I FUNDING STATUS REPORT FOR THE MANAGING OF IRRADIATED FUEL AND GTCC WASTE AT THE YANKEE NUCLEAR POWER PLANT INDEPENDENT SPENT FUEL STORAGE INSTALLATION (STATUS AS OF 12/31/2013)

March 2014

Attachment 1 to BYR 2014-015 Funding Status Report for the Managing of Irradiated Fuel and GTCC Waste at the Yankee Nuclear Power Plant Independent Spent Fuel Storage Installation (Status as of 12/31/2013) 10 CFR Requirement Response Comment 10 CFR 50.82(a)(8)(vii) Requirements

1. The amount of funds accumulated $107.8 million Yankee Atomic Electric Company (YAEC) has established an account within its to cover the cost of managing the (as of Nuclear Decommissioning Trust (NDT) entitled, "ISFSI Radiological Decom," that irradiated fuel. 12/31/13) segregates the funds for decommissioning of the Yankee Nuclear Power Plant Independent Spent Fuel Storage Installation (ISFSI) from the larger balance of funds for ongoing management of irradiated fuel and Greater than Class C (GTCC) waste held in the NDT. The market balance represented here as of 12/13/13 excludes the funds set-aside for decommissioning the ISFSI.

2. The projected cost of managing $160.4 million In 2013, YAEC submitted a revised cost estimate for management of the irradiated fuel irradiated fuel until title to the (2014 through and GTCC waste at the Yankee Nuclear Power Station ISFSI to the Federal Energy fuel and possession of the fuel is 2033) Regulatory Commission (FERC) that extended the duration of storage of irradiated fuel transferred to the Secretary of (In 2013 and GTCC waste based on recent information published by the DOE as a result of Blue Energy. dollars) Ribbon Commission recommendations. This cost estimate was approved by FERC in June, 2013.

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Attachment 1 to BYR 2014-015 Funding Status Report for the Managing of Irradiated Fuel and GTCC Waste at the Yankee Nuclear Power Plant Independent Spent Fuel Storage Installation (Status as of 12/31/2013) 10 CFR Requirement Response Comment

3. If the funds accumulated do not See Comment The Company has several methods of obtaining additional funds to cover projected cover the projected cost, a plan to costs.

obtain additional funds to cover the cost. First, 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 the ongoing costs of managing irradiated fuel and GTCC waste. Pursuant to these power contracts, YAEC has the ongoing ability to seek collections from its purchasers for additional funds that may be required to cover these costs.

Second, YAEC has received proceeds from the successful litigation of the first phase of its breach of contract damages claims against the DOE for failure to begin the removal of spent nuclear fuel (SNF) and GTCC waste from the site in 1998. In addition, YAEC is expecting the proceeds from the successful litigation of the second phase of its breach of contract damages claim against the DOE. YAEC will continue to file claims against the DOE as long as the DOE continues to breach its contract obligations related to SNF and GTCC waste. To that end, in August, 2013 the Company filed a third round of claims against the DOE seeking damages for the years 2009 - 2012. Each of these prospective claims will likely result in the receipt of proceeds that can be used to offset future costs, if required.

Accordingly, YAEC's most recent FERC filing which was approved in June, 2013, implemented a fifteen year funding mechanism. Until the 2013 FERC filing, the Company had employed a "full funding" assumption in developing funding requirements. The fifteen year funding mechanism was put in place to incorporate the potential for the receipt of future DOE breach of contract damages as a source of funding as discussed above. If future damage recovery does not occur, the Company has the ability to apply to FERC for more funding, if necessary. The approved FERC filing also requires YAEC to provide an information filing regarding the adequacy of funding if five years pass without receipt of damage awards from litigation with the DOE.

Third. YAEC expects to utilize the investment return on Decommissioning Trust assets Page 2 of 3

Attachment 1 to BYR 2014-015 Funding Status Report for the Managing of Irradiated Fuel and GTCC Waste at the Yankee Nuclear Power Plant Independent Spent Fuel Storage Installation (Status as of 12/31/2013) 10 CFR Requirement Response Comment to offset future costs. The current assumed rate of investment return, after fees and taxes is 4.5%.

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