ML20029B132
| ML20029B132 | |
| Person / Time | |
|---|---|
| Site: | Fort Saint Vrain  |
| Issue date: | 02/26/1991 |
| From: | Crutchfield D Office of Nuclear Reactor Regulation |
| To: | Crawford A PUBLIC SERVICE CO. OF COLORADO |
| References | |
| NUDOCS 9103050473 | |
| Download: ML20029B132 (4) | |
Text
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February 26, 1991 I
Docket No. 50-267 Mr. A. Clegg Crawford Vice President, Nuclear Corporation Public Service Company of Colorado P. O. Box 840 Denver, Colorado 80201-0840
Dear Mr. Crawford:
SUBJECT:
ACCUMULATION OF FUNDS FOR DECOMMISSIONING By letter of December 3,1990, you were informed that the U.S. Nuclear Reguletory Commission (NRC) was developing an approach to provide for the accumulation of the required funds that will ensure that the objectives of the decommissioning funding requirements are achieved without imposing on undue burden on the licensees who have prematurely terminated operation of licensed facilities.
Current decommissioning regulations require that the funds necessary to decommission a facility are to be available at the time that termination of operations is expected. These regulations apply both to nuclear facilities that operate through their normal lifetimes and to facilities that may be shut down prematurely.
However, the Commission has directed the NRC staff to develop a proposed rule that allows the staff to determine the appropriate collection period for decomissioning funding on a case-by-case basis for individual plants that prematurely ceose operations af ter July 27, 1988.
In the case of your f acility, the staff will determine the oppropriate collection period and, if appropriate, will issue exemptions from existing regulations.
Also, the Commission has determined that licensees who intend to dismantle their plents immediately on the basis of DECON must provide assurance that they will have sufficient decommissioning funds to dismantle the facility as proposed (using a method es described in 10 CFR 50.75(e)) before the commencement of decommissioning activities.
Additionally, for licensees who intend to delay completion of decommissioning by I-including a period of storage or long-term surveillance on the basis of SAFSTOR, the NRC will determine on eppropriete funding period for each prematurely shutdown reactor. This funding period will take into account the particular financial and rate reguletory environment of the individual licensee and will provide sufficient assurance of decommissioning funds to maintain adequate protection of the public health and safety. However, the NRC has determined that the accumulation of funds beyond the expiretion date of the operating license is unacceptable.
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Mr. A. Clegg Crawford February 26, 1991 Bosed on the Commission's decision, we request that you provide your position by describing what an ecceptable decommissioning funding plan would include for Fort St. Vrain, in your letter of November 5, 1990, which forwarded the Fort St. Vrain proposed decoraissioning plan, you indicated that the DECON alternative was selected for decommissioning Fort St. Vrain.
However, as indicated above, if you decide to use SAFSTOR, the plon must provide reasonable assurance that funds will be available to decommission your f acility within a reasonable period of time based on your financial and rate regulatory environ-ment.
The stof f believes that you would demonstrate such essurance by following either of the following two approaches:
(1) provide e surety bond, letter of l
credit, or other third party agreement for all projected decommissioning costs not externally funded within five years f rom now; or, (2) accumulate external funds for decommissioning for a period not extending beyond the full remaining term of your operating license.
However, to use the second approach, the staff believes thet you inust mairitain o bond roting of at least " single A" or equivalent as determined by the Moody's Investment Service, Standerd and Poors, or another national bond rating egency, if your bond rating drops below
" single A," you would be required to fund externally the entire remeining bal:nce within three months or to obtein a surety bond, letter of credit, or other third perty guarantee for the outstanding bolence.
Please submit your position aescribing on acceptet,le decommissioning funding plan for Fort St. Vrain within 30 days of the date of this letter.
Sincerely, Denriis M. Crutchfield, Director Division of Advanced Reactors and Special Projects Office of Nuclear Redctor Regulation cc: See atteched page DISTRIBUTION Docket file SReynolds SBrown PDNP r/f RWood PErickson FMiraglia DNash MMasnik FGillespie AGody Region IV JPartlow RDudley JCaldvall, EDO DCrutchfield WTravers OGC EHylton
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T-Mr.-A. Clegg Crawford Februa ry 26, 1991 Based on the Commission's decision, we request that you provide your position by describing what en acceptable decommissioning funding plan would include for Fort St. Vrain.. In your letter of Novenaber 5,1990, which forwarded the Fort St. Vrain proposed decommissioning plan, you indicated that the DECON alternative was selected for decommissioning Fort St. Vrain.
However, as indicated above, if you decide to use SAFSTOR, the plan must provide reasonable assurance that. funds will be available to decommission your facility within a reasonable period of time based on your financial and rate regulatory environ-ment. The staff believes that you would demonstrate such assurance by following either of the following two approaches:
(1) provide a surety bond, letter of credit, or other third party agreement for all projected decommissioning costs not externally funded within five years from now; or, (2) accumulate external funds for decommissioning for o period not extending beyond the full remaining term of your operating license.
However, to use the second approach, the staff believes that you must maintain a bond rating of at least " single A" or equivalent as determined by the Moody's investment Service, Standard and Poors, or another national bond rating agency.
If your bond rating drops below
" single A," you would be required to f und externally the entire remaining
- balance within three months or to obtain a surety bond, letter of credit, or other third party guarantee for the outstanding balance.
Please subniit your position describing an acceptable decommissioning funding plan for Fort St. Vrain within 30 days of the date of this letter.
Sincerely, enn N C h i t. I e
Division of Advanced Re ctors and Special Projects Office of Nuclear Reactor Regulation cc: See attached page l
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Mr. A. Clegg Crawford Docket No. 50-267 Public Service Company of Colorado Fort St. Vrain cc:
Mr. D. W. Warembourg, Manager Regional Representative Nuclear Engineering Division Radiation Programs Public Service Company Environmental Protection Agency of Colorado 1 Denver Ploce P. O. Box 840 999 18th Street, Suite 1300 Denver, Colorado 80201-0840 Denver, Colorado 80202-2413 Mr. David Alberstein, Manager Robert M. Quillin, Director Fort St. Vrain Services Radiction Control Division GA International Services Corporation Department of Health P. O. Box 85608 4210 East lith Avenue San Diego, California 92138 Denver, Colorado 80220 Mr. H. L. Brey, Manager Mr. Charles H. Fuller Nuclear Licensing and Resource Nuclear Production and Management Division Station Manager Public Service Company of Colorado Public Service Company of Colorado P. O. Box 840 16805 Weld County Road 19-1/2 Denver, Colorado 80201-0840 Platteville, Colorado 80651 Senior Resident inspector Mr. P. F. Tomlinson, Manager U.S. Nuclear Regulatory Comission Quality Assurance Division P. O. Box 640 Public Service C.opany of Colorado Platteville, Colorado 80651 16805 Weld County Road 19-1/2 Platteville, Colorado 80651 Kelley, Standfield & 0'Donnell ATTN: Mr. J. K. Terpey Mr. D. D. Hock Public Service Company Building President and Chief Executive Officer Room 900 Public Service Company of Colorado 550 15th Street P. O. Box 840 Denver, Colorado 80202 Denver, Colorado 80201-0840 Regional Administrator, Region IV Commitment Control Program U.S. Nuclear Regulatory Commission Coordinator 611 Ryan Plaza Drive, Suite 1000 Public Service Company of Colorado Arlington, Texas 76011 2420 W. 26th Avenue, Suite 100-D Denver, Colorado 80211 Chairman, Board of County Commissioners of Weld County, Colorado Greeley, Colorado 80631
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