ML18107A551
| ML18107A551 | |
| Person / Time | |
|---|---|
| Site: | Peach Bottom, Salem, Hope Creek  |
| Issue date: | 10/07/1999 |
| From: | Richard Ennis NRC (Affiliation Not Assigned) |
| To: | Keiser H Public Service Enterprise Group |
| References | |
| TAC-MA5674, TAC-MA5675, TAC-MA5676, TAC-MA6086, TAC-MA6087, NUDOCS 9910140100 | |
| Download: ML18107A551 (6) | |
Text
UNITED STATES NUCLEAR REGULATORY COMMISSION Mr. Harold W. Keiser Chief Nuclear* Officer & President -
Nuclear Business Unit Public Service Electric & Gas Company Post Office Box 236 Hancocks Bridge, NJ 08038 WASHINGTON, D.C. 20555--0001
.. October 7, 1999
SUBJECT:
REQUEST FOR ADDITIONAL INFORMATION, PROPOSED TRANSFER OF LICENSES FOR HOPE CREEK GENERATING STATION, SALEM NUCLEAR GENERATING STATION, UNITS 1AND2, AND PEACH BOTTOM ATOMIC POWER STATION, UNITS 2 AND 3 (TAC NOS. MA5674, MA5675, MA5676, MA6086, AND MA6087)
Dear Mr. Keiser:
By"letter dated June 4, 1999, Public Service Electric and Gas Company (PSE&G) requested that the U~S. Nuclear Regulatory Commission (NRC) consent to the transfer of PSE&G's interests in Facility Operating License No. NPF-57 for the Hope Creek Generating Station (Hope Creek) and Facility Operating License Nos. DPR-70 and DPR-75 for the Salem Nuclear Generating Station, Units 1 and 2 (Salem), respectively. Specifically, PSE&G requested that the NRC consent to the transfer of PSE&G's ownership interests and licensed operating authorities in Hope Creek and Salem to a new, affiliated nuclear generating company, PSEG Nuclear Limited Liability Company (PSEG Nuclear). In addition, by letter dated July 1, 1999, by PECO Energy Company, as supplemented August 11 and September 1, 1999, and as supplemented by PSE&G on July 23, 1999, PSE&G requested the NRC's consent to the transfer of PSE&G's non-operating ownership interests in Facility Operating License Nos. DPR-44 and DPR-56 for the Peach Bottom Atomic Power Station, Units 2 and 3, respectively to PSEG Nuclear.
The NRC staff is reviewing your submittals and has determined that additional information is required to complete the review. The specific information requested is addressed in the enclosure.
We request that the additional information be provided within 30 days of receipt of this letter. The I
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- *' 30-day response timeframe was discussed with Mr. James Priest of your staff on October 4, 1999.
If circumstances result in the need to revise your response date, or if you have any questions, please contact me at (301) 415-1420.
Docket Nos. 50-354, 50-272, 50-311, 50-277, and 50-278 Sincerely, Richard 8. Ennis, Project Manager, Section 2
- Project Directorate I Division of Licensing Project Management Office of Nuclear Reactor Regulation
Enclosure:
Request for Additional Information cc w/encl: See next page
, Salem Nuclear Generatin,Station, Units 1 and 2, and Hope CreeRenerating Station
'cc:,
Jeffrie J. Keenan, Esquire Nuclear Business Unit - N21 P.O. Box236 Hancocks Bridge, NJ 08038 General Manager - Salem Operations.
Salem Nuclear Generating Station P.O. Box 236 Hancocks Bridge, NJ 08038 Mr. Louis Storz Sr. Vice President - Nuclear Operations Nuclear Department P.O. Box 236 Hancocks Bridge, NJ 08038 Senior Resident Inspector Salem Nuclear Generating Station U.S. Nuclear Regulatory Commission Drawer 0509 Hancocks Bridge, NJ 08038 Dr. Jill Lipoti, Asst. Director Radiation Protection Programs NJ Department of Environmental Protection and Energy CN 415 Trenton, NJ 08625-0415 Maryland Office of People's Counsel 6 St. Paul Street, 21st Floor Suite 2102 Baltimore, MD 21202 Ms. R. A Kankus Joint Owner Affairs PECO Energy Company 965 Chesterbrook Blvd., 63C-5 Wayne, PA 19087 Mr. Elbert Simpson Senior Vice President-Nuclear Engineering Nuclear Department P.O. Box 236 Hancocks Bridge, NJ 08038 Hope Creek Resident Inspector U.S. Nuclear Regulatory Commission Drawer 0509 Hancocks Bridge, NJ 08038 Richard Hartung Electric Service Evaluation Board of Regulatory Commissioners 2*Gateway Center, Tenth Floor Newark, NJ 07102 Regional Administrator, Region I U.S. Nuclear Regulatory Commission 475 Allendale Road King of Prussia, PA 19406 Lower Alloways Creek Township c/o Mary 0. Henderson, Clerk Municipal Building, P.O. Box 157 Hancocks Bridge, NJ 08038 Director - Licensing Regulation & Fuels*
Nuclear Busienss Unit - N21 P.O. Box 236 Hancocks Bridge, NJ 08038 Mr. David Wersan Assistant Consumer Advocate Office of Consumer Advocate 1425 Strawberry Square Harrisburg, PA 17120 Manager - Joint Generation Atlantic Energy 6801 Black Horse Pike Egg Harbor Twp., NJ 08234-4130 Carl D. Schaefer External Operations - Nuclear Delmarva Power & Light Company P.O. Box 231
.Wilmington, DE.19899 Public Service Commission of Maryland Engineering Division Chief Engineer 6 St. Paul Centre Baltimore, MD 21202-6806 General Manager - Hope Creek Operations Hope Creek Generating Station P.O. Box 236 Hancocks Bridge, NJ 08038
Peach Bottom Atomic Power Station, Units 2 and 3 cc:
J. W. Durham, Sr., Esquire Sr. V.P. & General Counsel PECO Energy Company 2301 Market Street, S26-1 Philadelphia, PA 19101 PECO Energy Company ATTN: Mr. J. Doering, Vice President Peach Bottom Atomic Power Station 1848 Lay Road Delta, PA 17314 PECO Energy Company ATTN: Regulatory Engineer, A4-5S Peach Bottom Atomic Power Station Chief Engineer 1848 Lay Road Delta, PA 17314 Resident Inspector U.S. Nuclear Regula~ory Commission Peach Bottom Atomic Power Station P.O. Box 399 Delta, PA 17314 Regional Administrator, Region I U.S. Nuclear Regulatory Commission 475 Allendale Road King of Prussia, PA 19406 Mr. Roland Fletcher Department of Environment 201 West Preston Street Baltimore, MD 21201 A. F. Kirby, Ill External Operations - Nuclear Delmarva Power & Light Company P.O. Box 231 Wilmington, DE 19899 PECO Energy Company Plant Manager Peach Bottom Atomic Power Station 1848 Lay Road Delta, PA 17314 Chief-Division of Nuclear Safety PA Dept. of Environmental Resources P.O. Box 8469 Harrisburg, PA 17105-8469 Board of Suprevisors Peach Bottom Township R. D. #1 Delta, PA 17314 Public Service Commission of Maryland
- Engineering Division Chief Engineer 6 St. Paul Center Baltimore, MD 21202-6806 Mr. Richard Mclean Power Plant and Environmental Review Division Department of Natural Resources B-3, Tawes State Office Building Annapolis, MD 21401 Dr. Judith Johnsrud National Energy Committee Sierra Club 433 Orlando Avenue State College, PA 16803 Manager-Financial Control & Co-Owner Affairs Public Service electric and Gas Company P.O. Box 236 Hacocks Bridge, NJ 08038-0236 Manager-Peach Bottom Licensing PECO Energy Company Nuclear Group Headquarters Correspondence Control Desk P.O. Box No. 195 Wayne, PA 19087-0195
REQUEST FOR ADDITIONAL INFORMATION HOPE CREEK GENERATING STATION, SALEM NUCLEAR GENERATING STATION, UNITS 1 AND 2 PEACH BOTTOM ATOMIC POWER STATION, UNITS 2*AND 3 Financial Qualifications The source of funding for operating costs of the nuclear plants is to come from the sale of power to PSEG Energy Resources and Trade Limited Liability Company. There is a 3-year contract to sell at prices fixed by the Stipulation Agreement and at wholesale market prices after that.
1. What effect will the New Jersey Board of Public Utilities (BPU) mandated rate cuts have on PSEG Nuclear's.income and its ability to ineet operations and maintenance costs?
- 2. Your submittal dated June 4, 1999, states that PSEG Power (new wholesale generation holding company that will have PSEG Nuclear as a subsidiary) will have sufficient assets to fund an extended shutdown at one or more of the nuclear units. How much money is available for this purpose?
- 3. Your submittal dated June 4, 1999, states that PSEG Power will be established with "sufficient capitalization" to support at least a BBB credit rating. How much is sufficient capitalization?
Decommissioning Funding As'surance Public Service Electric and Gas Company (PSE&G) is proposing to hold the Decommissioning Trust Funds until Internal Revenue Service (IRS) tax issues are resolved.
- 1. What is the plan if an adverse IRS ruling (or no ruling) concerning the taxability of the funds being transferred is issued?
~- The Stipulation Agreement with the BPU states that PSE&G will not be responsible for decommissioning after the transfer. If.PSE&G is holding the decommissioning trust funds for some period of time, questions arise as to whether the U.S. Nuclear Regulatory Commission (NRC) would have authority over them. One option would be for PSE&G to remain on the license for decommissioning funding only. In the case of the Three Mile Island license transfer, GPU Energy had a statement in their application acknowledging and voluntarily accepting that the NRG would retain jurisdiction over GPU Energy's actions with respect to the fund, and declined to remain on the license. A license condition requiring modifications to the Trust Agreement was included in the amendment package. How would PSE&G like this issue to be handled?
1-ser October 7, 1999
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. 30-day response timeframe was discussed with Mr. James Priest of your staff on October 4, 1999.
- '/
If circumstances result in the need to revise your response date, or if you have any questions, please contact me at (301) 415-1420.
Sincerely, ORIGINAL SIGNED BY:
Richard 8. Ennis, Project Manager, Section 2 Project Directorate I Docket Nos. 50-354, 50-272, 50-311, 50-277, and 50-278
. Division of Licensing Project Management Office of Nuclear Reactor Regulation
Enclosure:
Request for Additional Information cc w/encl: See next page DISTRIBUTION:
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