ML14183A360
| ML14183A360 | |
| Person / Time | |
|---|---|
| Site: | Harris, Brunswick, Robinson  |
| Issue date: | 04/07/1997 |
| From: | Reinhart M NRC (Affiliation Not Assigned) |
| To: | Orser W CAROLINA POWER & LIGHT CO. |
| References | |
| NUDOCS 9704100081 | |
| Download: ML14183A360 (4) | |
Text
01RWREG(/(
5
-2 UNITED STATES NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 20555-0001 April 7, 1997 Mr. William S. Orser Executive Vice President -
Energy Supply Chief Nuclear Officer.
Carolina Power & Light Company P. 0. Box 1551 Raleigh, North Carolina 27602
SUBJECT:
DECOMMISSIONING FUNDING
Dear Mr. Orser:
This is in reference to your letter (PE&RAS-96-063) dated September 30, 1996 regarding the status of decommissioning funding for Carolina Power & Light Company's (CP&L's) Harris, Brunswick, and Robinson nuclear plants. In your letter, you made several statements that require clarification with respect to your application of the requirements of the NRC's decommissioning funding requirements in 10 CFR 50.75.
Specifically, in the third paragraph of page 2 of your letter, you state: "The total amount of financial assurance required under 10 CFR 50.75(c)(2) for CP&L's four nuclear plants is currently estimated to be $3.19 billion. CP&L believes that-the site-specific estimates totalling $2.6 billion are more accurate, and are consistent with the statements of consideration to the present 10 CFR 50.75...." You have not provided the basis for your estimate of $3.19 billion in your letter, so we are unable to address the assumptions underlying that estimate.
10 CFR 50.75 contemplates that a licensee will provide assurance of decommissioning costs based on the escalation formula in
§ 50.75(c)(2) that is calculated up to the current year (i.e., in this case, 1996, since information is not yet available for 1997).
The NRC's regulations do not require its power reactor licensees to use the formula to project future inflation. Although the amounts required for decommissioning in the formulas in § 50.75(c) in 1996 dollars will vary according to the size and type of reactor, and local labor, energy, and low-level waste disposal rates, for a full-size boiling water reactor (the units having the highest projected decommissioning cost), the formula amount, escalated to 1996 dollars, is projected to be in the $400 to $450 million range. As further escalation occurs in future years, this target may have to be adjusted. However, because it is not clear from your letter how you derived your projections, we ask that you submit additional information to support your projections and conclusions.
Additionally, in the second paragraph of page 1 of your letter, you state, "However, CP&L has-not filed any rate cases over this period of time, and there are currently no plans to file any rate cases. Therefore, because the underlying assumptions proved to be incorrect, Exhibits D and E do not reflect CP&L's current funding of decommissioning costs for its nuclear units." In the statement of consideration of the 1988 decommissioning rule, the NRC deferred to State public utility commissions and the Federal Energy 9704100081 970407 1
PDR ADOCK 05000261 W
_PDR
-2 Regulatory Commission to set rates for collecting decommissioning funds.
Please explain the effect upon your projected decommissioning funding resulting from your determination not to file such rate requests. Please also explain the basis for your statement, in the first paragraph on page 3 of your letter, that "CP&L will not meet the current minimum funding requirements of 10 CFR 50.75" and any regulatory relief you are seeking as a result of this lack of compliance.
If you have any questions on this matter and on our request for additional information as described above, please contact Robert Wood (301-415-1255) or N. B. Le (301-415-1458).
Sincerely, (Original Signed By)
Mark Reinhart, Acting Director Project Directorate II-1 Division of Reactor Projects - I/II Office of Nuclear Reactor Regulation Docket Nos. 50-324, 50-325, 50-261, and 50-400 cc:
See next page Distribution: zD.o-cke-tF:i.1:es Public PDII-1 Reading S. Varga J. Johnson, RH DOCUMENT NAME: G:\\HARRIS\\HAR96697.LTR 4
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D:PDII-1 NAME RDudley DTrimb a an MReinhar DATE 03/ 5/97
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No OFFICIAL RECORD COPY
Mr. W. S. Orser Carolina Power & Light Company William D. Johnson Vice President and Senior Counsel Mr. C. S. Hinnant Carolina Power & Light Company Vice President Post Office Box 1551 Carolina Power & Light Company Raleigh, North Carolina 27602 H. B. Robinson Steam Electric Plant 3581 West Entrance Road Karen E. Long Hartsville, South Carolina 29550 Assistant Attorney General State of North Carolina Mr. Max Batavia, Chief Post Office Box 629 Bureau of Radiological Health Raleigh, North Carolina 27602 South Carolina Department of Health and Environmental Control U. S. Nuclear Regulatory Commission 2600 Bull Street Resident Inspector's.Office Columbia, South Carolina 29201 H. B. Robinson Steam Electric Plant Route 5, Box 413 Mr. T. D. Walt Hartsville, South Carolina 29550 Director Operations & Environmental Regional Administrator, Region II Support Department U. S. Nuclear Regulatory Commission Carolina Power & Light Company 101 Marietta Street, N.W., Ste. 2900 412 S. Wilmington Street Atlanta, Georgia 30323 Raleigh, North Carolina 27601 Mr. Dale E. Young Resident Inspector/Harris NPS Plant General Manager Nuclear Regulatory Commission Carolina Power & Light Company 5421 Shearon Harris Road H. B. Robinson Steam Electric Plant New Hill, N. C. 27562-9998 3581 West Entrance Road Hartsville, South Carolina 29550 Mr. W. R. Robinson Vice President -
Harris Plant Mr. Mel Fry, Acting Director Carolina Power & Light Company N.C. Department of Environment, Shearon Harris Nuclear Power Plant Health and Natural Resources Post Office Box 165 Division of Radiation Protection New Hill, North Carolina 27562-0165 3825 Barrett Dr.
Raleigh, North Carolina 27609-7721 Mr. W. R. Campbell, Vice President Carolina Power & Light Company Mr. Robert P. Gruber Brunswick Steam Electric Plant Executive Director Post Office Box 10429 Public Staff - NCUC Southport, North Carolina 28461 Post Office Box 29520 Raleigh, North Carolina 27626-0520 Mr. Donald Warren, Chairman Brunswick County Board Resident Inspector of Commissioners U. S. Nuclear Regulatory Commission Post Office Box 249 Brunswick Steam Electric Plant Bolivia, North Carolina 28422 8470 River Road Southport, North Carolina 28461 Mr. J. W. Donahue Plant Manager -
Harris Plant Carolina Power & Light Company Shearon Harris Nuclear Power Plant Post Office Box 165, MC:
Zone 1 New Hill, North Carolina 27562-0165
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Mr. K. R.A Mr. William Levis Manager - Regulatory Affairs Director Carolina Power & Light Company Site Operations Brunswick Steam Electric Plant Brunswick Steam Electric Plant P. 0. Box 10429 Post Office Box 10429 Southport, North Carolina 28461-0429 Southport, North Carolina 28461 Mr.- T. M. Wilkerson Mr. R. P..Lopriore Manager - Regulatory Affairs Plant Manager Carolina Power & Light Company Carolina Power & Light Company H. B. Robinson Steam Electric Plant, Brunswick Steam Electric Plant Unit No. 2 Post Office Box 10429 3581 West Entrance Road Southport, North Carolina 28461 Hartsville, SC 29550-0790 Mr. William H. Crowe, Mayor City of Southport 201 East Moore Street Southport, NC 28461 Public Service Commission State of South Carolina Post Office Drawer 11649 Columbia, South Carolina 29211 Mr. Dan E. Summers Emergency Management Coordinator New Hanover County Department of Emergency Management Post Office Box 1525 Wilmington, North Carolina 28402 Chairman of the North Carolina Utilities Commission Post Office Box 29510 Raleigh, North Carolina 27626-0510 Ms. D. B. Alexander, Supervisor Licensing/Regulatory Programs Carolina Power & Light Company Shearon Harris Nuclear Power Plant P. 0. Box 165, Mail Zone 1 New Hill, North Carolina 27562-0165 Mr. H. K. Chernoff, Supervisor Licensing/Regulatory Programs Carolina Power & Light Company H. B. Robinson Steam Electric Plant, Unit No. 2 3581 West Entrance Road Hartsville, South Carolina 29550 Mr. Stewart Adcock, Chairman Board of County Commissioners of Wake County P. 0. Box 550 Raleigh, North CarolinaC 27602