ML19276G488

Forwards Ga Carlson Ltr Re Price-Anderson Act Retrospective Insurance Premiums

ML19276G488
Person / Time
Site:	Vermont Yankee File:NorthStar Vermont Yankee icon.png
Issue date:	08/15/1978
From:	Brue N GREEN MOUNTAIN POWER CORP.
To:	Dinitz I Office of Nuclear Reactor Regulation
References
NUDOCS 7905310261
Download: ML19276G488 (3)

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UJ p- NORDAHL L BRUE l 4: DOUCLAS G. HYDE

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Attorneys at Law ON, VERMONT 05401l802)8%$731 hij  !

CREEN MOUNTAtN POWER CORPORATION,1 MAIN STREET, BURLINcT b

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fT August 15, 1978 M+,n-q Tv s 26

$; i 9,. - Mr.' Ira Dinitz '

Antitrust and Indemnity Group i Nuclear Reactor Regulation '

U. S. Nuclear Regulatdry Comission Gj Washington, D.C. 20555 r

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Dear Mr. Dinitz:

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Enclosed please find a lette'r relating to the Price-Anderson Act

.d Retrospective Insurance Premiums, which is beingh sent tts to you at t

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request of Eleanor D. Acheson of Ropes and Gray, Boston, Passac

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Nn? . Brue M .

General Counsel &

E.7 Corporate Secretary P-1 j,y , '

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GREEN MOUNTAIN POWER CORPORATION i ONE M.uN STREET, P. O. box 850 BURLINGTON, VERMONT 05402 son /se4- s701 August 15, 1978 Vennant Yankee Nuclear Power Corporation 77 Grove Street Rutland, Vermont p5701 Re: Price-Anderson Act Retrospective Insurance Premiums

Dear Sirs:

You have advised Green Mount'ain P'ower Corporation (" Green Mountain")

that, pursuant to the provisions of the 1975 Amendments to the Price-Anderson Act and to the regulations promulgated by the United States Nuclear Regulatory Commission ("NRC") to implement that statute, you are required, as the holder of an NRC Operating License, to demonstrate to the NRC your ability to pay on a timely basis the maximum annual assess-c.ent of $10,000,000 for potential deferred retrospective premiums. In this connection, you have entered into separate binder agreements, dated as of August 1,1977, under the Master Policy - Nuclear Energy Liability Policy (Secondary Financial Protection) with each of the two groups of insurance companies providing such insurance, by which binders you have obligated yourself to pay any such deferred retrospective premium assess-ment. Green Mountain along with your other sponsors, has endorsed upon those binders its several obligation to pay its respective percentage of 17.9 percent of those assessments if you fail to pay such sums when due.

%'u.,.uihis letter confinns Green Mountain's understanding with you that any such retrospective premium assessment when assessed by the NRC, or by the insurance groups acting on its behalf, would constitute one of your " operating expenses" within the meaning of the Power Contract, dated February 1, 1968, as revised June 1, 1972, between you and Green Mountain. As such, our respective 3ercentage of 17.9 percent of those assessments would be properly billa ble by you and payable by us in accor-dance with our respective Power Contract.

Green Mountain understands that you will deliver a copy of this letter to the NRC in connection with their evaluation of your ability

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t Vennont Yankee Nuclear Power Corporation August.15, 1978 to meet your retrospective premium obligations and that the NRC will be relying upon this confirmation in connection with that evaluation.

Green Mountain Power Corporation By -

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~ u. A. Carlson Vice President-Finance i i

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