ML17278B151

Responds to 10CFR140.21 Requirement for Annual Filing of Guarantee of Payment of Deferred Premium.Util Concurs W/Bpa Opinion,Contained in Author 841219 Ltr to a Schwencer,That BPA Responsible for Meeting Insurance Obligation

ML17278B151
Person / Time
Site:	Columbia
Issue date:	12/18/1986
From:	Sorensen G WASHINGTON PUBLIC POWER SUPPLY SYSTEM
To:	Adensam E Office of Nuclear Reactor Regulation
References
GO2-86-1069, NUDOCS 8612230464
Download: ML17278B151 (5)

Text

REQU ORY INFORNATION DISTRIBUT SYSTEN (RIDS)

ACCESSION NBR-'612230464 DOC. DATE: 86/12/18 NOTAR I ZED: NO DOCKET 0 FACIL: 50-397 AUTH. NANE MPPSS AUTHOR AFFILIATION li Nuclear Prospect> Urrit 2> Mashington Pub c Poue 05000397 SORENSEN> Q. C. Mashington Public Power Supply System REC I P. NANE REC IP I ENT AFFILIATION ADENBAN> E. 0 BMR Prospect Directorate 3

SUBJECT:

Responds to 10CFR140. 21 requirement for annual filing of guarantee of payment of deferred premium. Util concurs w/BPA opinion> contained in author 841219 ltr to A Schwencer> that BPA responsible for meeting insurance obligation.

DISTRIBUTION CODE: NOOID COPIEB RECEIVED: LTR i ENCL I BIZE:

TITLE: Insurance: Indemnity/Endorsement Agreements NOTES:

REC IP IENT COPIES RECIPIENT COP IEB ID CODE/NANE LTTR ENCL ID CODE/NANE LTTR ENCL BMR PD3 LA 1 1 INTERNAL: AEOD/PTB 1 1 REe FILE 01 SP 1 1 EXTERNAL LPDR NRC PDR 02 TOTAL NUNBER OF COPIES REQUIRED: LTTR 6 ENCL 6

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WASHINGTON PUBLIC POWER SUPPLY SYSTEM P.O. Box 968 ~ 3000 George Washington Way ~ Richland, Washington 99352 861223P464 86ygy8 PDR ADOCK poppp397t J PDR Docket No. 50-397 G02-86-1069 December 18, 1986 Director of Nuclear Reactor Regulation Attention: Ms. E. G. Adensam BWR Project Directorate No. 3 Division of BWR Licensing U.S. Nuclear Regulatory Commission Washington, D. C. 20555

Subject:

SUPPLY SYSTEM NUCLEAR PLANT NO. 2 OPERATING LICENSE NPF-21 GUARANTEE OF PAYMENT OF DEFERRED PREMIUM

Reference:

Letter, G. C. Sorensen (Supply System) to A Schwencer (NRC), same subject, dated December 19, 1984 This transmittal is in compliance with 10CFR 140.21 which requires annual filing of a guarantee of payment of deferred premiums in the amount of

$ 10 million for each licensed reactor.

The Supply System obtains revenue from Plant No. 2 by selling the capability of the plant. The Bonneville Power Administration (BPA), an agency of the Department of Energy, has purchased the entire capability of Plant No. 2 from certain of its statutory preference customers who, in turn, purchased such capability from the Supply System, all under the Net Billing Agreements. A copy of the Net Billing Agreements was included as an attachment to the referenced letter. Under the terms of the Net Billing Agreements, BPA is obligated to pay the total annual costs of Plant No. 2.

In Attachment 1 to the referenced letter, BPA's General Counsel provided the opinion that Bonneville is obligated to pay costs of ownership, operation, and maintenance, including cost of insurance, and specifically, that insurance obligation provided through the Price Anderson act.

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iEG Adensam Guarantee of Payment of Deferred Premium Page 2 Me believe that the opinion of Bonneville regarding their obligation to pay satisfies the requirements of 10CFR 140.21. If you require additional documentation, please contact Rich Bresnahan at (509) 372-5352.

Very truly yours, G. C. So ensen, Manager Regulatory Programs cc: JO Bradfute/NRC I Dinitz/NRC JB Martin/Region V NS Reynolds/BLCP8R RE Dodds/NRC site JD Saltzman/NRC