ML18057A350

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Forwards Request for Addl Info Re Proposed Transfer of Ownership of Facility to Palisades Generating Co.Response to Questions Re Stockholder Financial Liability & Equity Responsibility Should Be Submitted by 900820
ML18057A350
Person / Time
Site: Palisades 
Issue date: 07/25/1990
From: Brian Holian
Office of Nuclear Reactor Regulation
To: Berry K
CONSUMERS ENERGY CO. (FORMERLY CONSUMERS POWER CO.)
References
PAL-90-032, PAL-90-32, TAC-72245, NUDOCS 9008020009
Download: ML18057A350 (6)
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Text

Docket No. 50-255 Serial No. PAL 90-032 Mr. Kenneth W. Berry Director, Nuclear Licensing

  • Consumers Power Company 1945 West Parnall Road Jackson, Michigan 49201

Dear Mr. Berry:

July 25, 1990 *

SUBJECT:

PALISADES PLANT - PALISADES GENERAtING COMPANY REQUEST FOR ADDITIONAL INFORMATION (TAC NO *. 72245-),

The *staff is currently reviewing certain aspects of the proposed transfer :of ownership of the Palisades Plant from Consumers Power Company to Palisades Generating Company *. The enclosure to this* letter contains a series of questions relating to stockholder financial liability and equity responsibility..

Several of these questions were discussed during:o~r telephone conference on June 29, 1990.

We request that you respond in ~riting to this request not*

later than August 20, 1990,'.

The reporting and/or recordkeeping requirements contained in this letter affect

  • fewer than ten respondents; therefore, OMB'cl~arance under PL ~6-511 is. not

"*r~qu ired.

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Enclosure:

As stated

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UNITED STATES NUCLEAR REGULATORY COMMISSION Docket No. 50-255 Serial No. PAL 90-032 Mr. Kenneth W. Berry Director, Nuclear Licensing Consumers *Power Company 1945 West Parnall Road Jackson, Michigan 49201

Dear Mr. Berry:

WASHINGTON. D. C. 20555 July 25, 1990

SUBJECT:

PALISADES PLANT - PALISADES GENERATING COMPANY REQUEST FOR ADDITIONAL INFORMATION (TAC NO. 72245)

The staff is currently reviewing certain aspects of the proposed transfer of ownership of the Palisades Plant from Consumers Power Company to Palisades Generating Ccmpany.

The enclosure to this letter contains a series of questions relating to stockholder financial liability and equity responsibility.

S~veral of these questions were discuss~d during our telephone conference on June 29, 1990.

We request that you respond in writing to this request not later than August 20, 1990.

The reporting and/or recordkeeping requirements contained in this letter affect fewer than ten respondents; therefore, OMB clearance under PL 96-511 is not required *.

cc: See next page

Enclosure:

As stated -

Sincerely, Brian Holian, Project Manager Project Directorate III-1 Division of Reactor Projects - III, IV, V & Special Projects Office -0f Nuclear Reactor Regulation

PAlJ~~~ES GENERATI~G COMPANY REQUEST FOR ADDlTJ.9~~-L_J~f!JBMATJ.Q~

EtlCLOSURE (1) What is the dollar liability of the stockholders in the event of a contingency whose cost exceeds the amount origiria lly contributed by them?

For exampl~, assume that an accident occurs which requires an expenditure in excess of total initial contributed equity capital. If debt finar1cing is exhausted or unavailable, what is the dollar obligation of each stockholder (Consumers, Bechtel and Westinghouse)?

(2) Also relating to any contingency situation as described in question 1*,

would each party forego its initial investment and pay no more?

Or would the excess amount above anc! beyond the origirial equity investment be paid by each party based vn their proportional share of ownership?

Please define exactly* how this sort of ever1t would b~ resolved.

(3) At about what capacity factor does Consumers' obligation take effect to

.make purchase~ of and payments for Available Energy?

(p.9* of Power Purchase Agn:ement)

(~) Whc pays for maintaining the P~lisades Plant in a safe and stable coriditfor1 in the situation arising iri qu~sfion 3, where Consumers' is not ob 1 igated to n1a ke payments?

(5)

Who pays to maintain Palisades in a safe arid stable condition under the outage c0r1dition described in the License Change Request, revision l, p. 8 and

  • the cor1dition* described in 10.1.4, p. 22 of the Power Purchase Agreement?

Mr. Kenneth W. Berry Consumers Power Company cc:

M. I. Miller, Esquire Sidley & Austin 54th Floor One First National Plaza Chicago, Illinois 60603 Mr. Thomas A. McNish, Secretary Consumers Po~1er Company 212 West Michigan Avenue Jackson, Michigan 49201 Judd L. Bacon, Esquire Consumers Power Company 212 West Michigan Avenue Jackson, Michigan 49201

  • Regional Administrator, Region III U.S. Nuclear Regulatory Commission 799 Roosevelt Road Gle~ Ellyn, Illinois 60137 Jerry Sarno Township Supervisor Covert Towriship 36197 M-140 Highway Covert, Michig~n 49043 Office of the Governor Room 1 - Capitol Building Lansing, ~'.ichiga11 48913 Mr. Gerald B. Slade Plant General Mariager Palisades Plant 27780 Biue Star Memorial Hwy.

Covert, Michigan 49043 Resident Inspector c/o U.S. Nuclear Regulatory Commission Palisades Plant 27782 Blue.Star Memorial Hwy.

Covert, ~ichigan 49043 Palisades Plant Nuclear Facilities and Environmental Monitoring Section Office Division of Radiological Health P.O. Box 30035 Lansing, Michigan 48909 Gerald Charnoff, P.C.

Shaw, Pittman, Potts & Trowbridge 2300 N. Street, N.W.

Washir1gton, O.C.

20037 Mr. David L. Brannen Vice President Palisades Generating Plant c/o Bechtel Power Corporation 15740 Shady Grove Road Gaithersburg, Maryland 20877

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00 Docket ~50-255)

Consumers Power Company ATTN:

Mr. Kenneth WA Berry Director, Nuclear Licensing 1945 West Parnall Road Jackson, Michigan 49201

Dear Mr. Berry:

June 26, 1990 Nuclear Regulatory Commission {NRC) staff has reviewed Consumer Power Company's

{CPCo) License Application for an Independent Spent Fuel Storage Installation

{ISFSI) at the Palisades Nuclear Power Plant, dated March 12, 1990.

We are enclosing the staff's detailed review comments and questions on the Safety Analysis Report {SAR) entitled "Palisades ISFSI Safety Analysis Report,"

PSN-CPC-0114.002, Revi~j.9.rr.O, dated October 1989.

We are also providing you some minor comments on CPCo's License Application. {see Enclosure).

The SAR for CPCo was prepared by Pacific Nuclear Associates { PSN). ~~However, PSN used Revision 0 of their topical report (TR) as a reference.

As a result, many review questions generated by us were related to an out-of-date version of the TR.

We therefore request that CPCo's response to our comments and.

questions should include all the current design changes and analyses and reference the most up-to-date version of the TR.

If you have any question, please call K.C! Leu at {301). 492-0696.

Enclosure:

Questions and Comments cc: Attached list Sincerely,

  • Ongina\\ Signed By John P. Roberts, Section Leader Irradiated Fuel Section Fuel Cycle Safety Branch Division of Industrial and Medical Nuclear Safety Distribution:

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Mr. Kenneth W. Berry Consumers Power Company cc:

M. I. Miller, Esquire Sidley & Austin 54th Floor One First National Plaza Chicago, Illinois 60~03 Mr. Thomas A. McNish, Secretary Consumers Power Company 212 West Michigan Avenue Jackson, Michigan 49201 Judd L. Bacon, Esqu~re Consumers Power Company 212~West Michigan Av~nue Jackson, Michigan 49201 Regional Administrator, Region III U.S. Nuclear Regulatory Commission 799 Roosevelt Road Glen Ellyn, Illinois 60137 Jerry Sarno Township Supervisor Covert Township 36197 M-140 Highway Covert, Michigan 49043 Office of the Governor Room 1 - Capitol Building Lansing, Michigan 48913 Mr. Gerald B. Slade Plant General Manager Palisades Plant 27780 Blue Star Memorial Hwy.

Covert, Michigan 49043 Resident Inspector c/o U.S. Nuclear Regulatory Commission Palisades Plant 27782 Blue Star Memorial Hwy.

Covert, Michigan 49043 Palisades Plant Nuclear Facilities and Environmental Monitoring Section Office*

Division of Radiological Health P.O. Box'30035 Lansing, Michigan 48909 Gerald Charnoff, P.C.

Shaw, Pittman,

  • Potts & Trowbridge 2300 N. Street, N.W.

Washington, D.C.

20037 Mr. David L. Brannen Vice President Palisades Generatig Plant c/o Bechtel Power Corporation 15740 Shady Grove Road Gaithersburg, Maryland 20877

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