ML15211A161
| ML15211A161 | |
| Person / Time | |
|---|---|
| Site: | Beaver Valley, Davis Besse, Perry, 07201043, 07200069 |
| Issue date: | 10/16/2015 |
| From: | Bhalchandra Vaidya Plant Licensing Branch III |
| To: | Boles B FirstEnergy Nuclear Operating Co |
| Bhakchandra Vaidya | |
| References | |
| TAC MF6181, TAC MF6182, TAC MF6183, TAC MF6184 | |
| Download: ML15211A161 (6) | |
Text
UNITED STATES NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 20555-0001 October 16, 2015 Mr. Brian D. Boles Vice President, Nuclear Support FirstEnergy Nuclear Operating Company 341 White Pond Drive Akron, OH 44308
SUBJECT:
FIRSTENERGY NUCLEAR OPERATING COMPANY - BEAVER VALLEY POWER STATION, UNIT NO. 1; BEAVER VALLEY POWER STATION INDEPENDENT SPENT FUEL STORAGE INSTALLATION; DAVIS-BESSE NUCLEAR POWER STATION INDEPENDENT SPENT FUEL STORAGE INSTALLATION; PERRY NUCLEAR POWER PLANT; PERRY NUCLEAR POWER PLANT INDEPENDENT SPENT FUEL STORAGE INSTALLATION REGARDING ANNUAL FINANCIAL TEST FOR A PARENT COMPANY GUARANTEE (CAC NOS. MF6181, MF6182, MF6183, AND MF6184)
Dear Mr. Boles:
By letter dated March 31, 2015 (Agencywide Documents Access and Management System (ADAMS) Accession No. M15090A441), as supplemented by letter dated June 30, 2015 (ADAMS Accession No. ML15181A323), FirstEnergy Nuclear Operating Company (FENOC) provided the U.S. Nuclear Regulatory Commission (NRC) with annual financial test data in support of its corporate subsidiaries, (FirstEnergy Corporation and FirstEnergy Solutions Corporation), which have provided Parent Company Guarantee (PCG) to their subsidiaries, pursuant to Title 10 of the Code of Federal Regulations, Part 30, Appendix A, "Criteria Relating to Use of Financial Tests and Parent Company Guarantees for Providing Reasonable Assurance of Funds for Decommissioning."
The NRC staff has completed its review and determined that FirstEnergy Corporation and FirstEnergy Solutions Corporation have complied with the requirements of 1 O CFR Part 30, Appendix A, and specifically provided the information required in 10 CFR Part 30, Appendix A(C)(1). The NRC staff also finds that FirstEnergy Corporation and FirstEnergy Solutions Corporation have submitted the necessary information within 90 days after the close of the succeeding fiscal year. FirstEnergy Corporation and FirstEnergy Solutions Corporation successfully repeated the annual passage of the test.
A copy of the NRC staff safety evaluation is enclosed.
If you have any questions, please contact me at (301) 415-3308.
Sincerely, Bhalchandra Vaidya, Project Manager Plant Licensing 111-2 and Planning and Analysis Branch Division of Operating Reactor Licensing Office of Nuclear Reactor Regulation Docket Nos. 50-334, 72-1043,72-014 50-440, and 72-69
Enclosure:
As stated cc w/encl: Distribution via Listserv Mr. Samuel L. Belcher President and Chief Operating Officer FirstEnergy Nuclear Operating Company 341 White Pond Drive Akron, OH 44308 Mr. Brian D. Boles Site Vice President, Davis-Besse FirstEnergy Nuclear Operating Company Mail Stop A-DB-3080 5501 North State, Route 2 Oak Harbor, OH 43449-9760 Mr. Ernest J. Harkness Site Vice President FirstEnergy Nuclear Operating Company Mail Stop A-PY-A290 P.O. Box 97, 10 Center Road Perry, OH 44081-0097 Mr. Eric A. Larson Vice Site Vice President FirstEnergy Nuclear Operating Company Beaver Valley Power Station Mail Stop A-BV-SEB1 P.O. Box 4, Route 168 Shippingport, PA 15077
UNITED STATES NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 20555-0001 SAFETY EVALUATION BY THE OFFICE OF NUCLEAR REACTOR REGULATION ANNUAL FINANCIAL TEST FOR A PARENT COMPANY GUARANTEE GIVEN BY FIRSTENERGY SOLUTIONS CORPORATION AND Fl RSTENERGY CORPORATION BEAVER VALLEY POWER STATION, UNIT No. 1; DOCKET 50-334 BEAVER VALLEY POWER STATION INDEPENDENT SPENT FUEL STORAGE INSTALLATION (ISFSI); DOCKET No. 72-1043 DAVIS-BESSE NUCLEAR POWER STATION ISFSI; DOCKET No. 72-14 PERRY NUCLEAR POWER PLANT; DOCKET No. 50-440 PERRY NUCLEAR POWER PLANT ISFSI; DOCKET No. 72-69
1.0 INTRODUCTION
By letter dated March 31, 2015 (Agencywide Documents Access and Management System (ADAMS) Accession No. M15090A441), as supplemented by letter dated June 30, 2015 (ADAMS Accession No. ML15181A323), FirstEnergy Nuclear Operating Company (FENOC) provided the U.S. Nuclear Regulatory Commission (NRC) with annual financial test data in support of its corporate subsidiaries, (FirstEnergy Corporation and FirstEnergy Solutions Corporation), which have provided Parent Company Guarantees (PCG) to their subsidiaries, pursuant to Title 1 O of the Code of Federal Regulations, Part 30, Appendix A, "Criteria Relating to Use of Financial Tests and Parent Company Guarantees for Providing Reasonable Assurance of Funds for Decommissioning." In addition, 1 O CFR Part 30, Appendix A(C)(1 ),
states that "after the initial financial test, the parent company must repeat the passage of the test within 90 days after the close of each succeeding fiscal year."
The Ohio Edison Company and The Toledo Edison Company obtained a PCG from their parent company, FirstEnergy Corporation (FE), for obligations associated with the decommissioning of the Beaver Valley Power Station and its associated Independent Spent Fuel Storage Installation (ISFSI), and the Perry Nuclear Power Plant ISFSI. The FirstEnergy Nuclear Generation LLC, obtained two PCGs from its parent, FirstEnergy Solutions Corporation, for its decommissioning obligations; one PCG is for the decommissioning obligations associated with Beaver Valley Power Station, Unit 1, and Perry Nuclear Power Plant. The second PCG is associated with Enclosure Beaver Valley Power Station ISFSI, Davis-Besse Nuclear Power Station ISFSI, and the Perry Nuclear Power Plant ISFSI.
The financial test provides assurance that FirstEnergy Solutions Corporation can continue maintaining $175.5 million in PCG coverage for decommissioning funding assurance for the units as listed below. The $175.5 million figure is the total value combination of five separate PCG:
UNIT Beaver Valley Power Station, Unit No. 1 Perry Nuclear Power Plant Davis-Besse Nuclear Power Station ISFSI Perry Nuclear Power Plant ISFSI Beaver Valley Power Station ISFSI TOTAL:
Parent Company Guarantee
$90,000,000
$65,000,000
$ 6,000,000
$ 7,500,000
$ 7,000,000
$175,500,000 In its June 30, 2015, supplemental submission, FirstEnergy Solutions Corporation increased the combined PCGs for Davis-Besse Nuclear Power Station ISFSI, Perry Nuclear Power Plant ISFSI, and Beaver Valley Power Station ISFSI, from $19 million to $20.5 million, as reflected above.
For the second set of PCGs, a financial test provides assurance that FirstEnergy Corporation can continue maintaining $4.0 million in PCG coverage for decommissioning funding assurance for the units as listed below. The $4.0 million figure is the total combined value of two separate PCGs:
UNIT Perry Nuclear Power Plant Beaver Valley Power Station ISFSI TOTAL:
2.0 ANALYSIS
Parent Company Guarantee
$1,750,000
$2,250.000
$4,000,000 In its March 31, 2015, submittal, FirstEnergy Corporation and FirstEnergy Solutions Corporation conducted the financial test in accordance with 1 O CFR Part 30, Appendix A, Section ll(A)(2).
Both FirstEnergy Corporation and FirstEnergy Solutions Corporation provided all the necessary information associated with the test including a report of its Independent Accountants, PricewaterhouseCoopers LLP.
Fundamental to the financial test is the determination that FirstEnergy Corporation and FirstEnergy Solutions Corporation each have tangible net worth that is at least six times the value of the PCG obligations. FirstEnergy Corporation has a tangible net worth of
$3,017 million against total PCG of $4.0 million rendering a ratio of 754, which is greater than six, which is the minimum required in the financial test. FirstEnergy Solutions Corporation has a tangible net worth of $1,444 million against total PCG of $175.5 million rendering a ratio of eight, which is greater than six.
3.0 CONCLUSION
The NRC staff finds that FirstEnergy Corporation and FirstEnergy Solutions Corporation each have complied with the requirements of 1 O CFR Part 30, Appendix A, and specifically provided the information required in 10 CFR Part 30 Appendix A(C)(1 ). The NRC staff also finds that FirstEnergy Corporation and FirstEnergy Solutions Corporation have submitted the necessary information within 90 days after the close of the succeeding fiscal year. FirstEnergy Corporation and FirstEnergy Solutions Corporation successfully repeated the annual passage of the test.
Principal Contributor: Michael A. Dusaniwskyj Date of issuance: October 16, 2015
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