ML20035E779
| ML20035E779 | |
| Person / Time | |
|---|---|
| Site: | Trojan File:Portland General Electric icon.png |
| Issue date: | 04/15/1993 |
| From: | Cross J, Walt T PORTLAND GENERAL ELECTRIC CO. |
| To: | NRC OFFICE OF THE EXECUTIVE DIRECTOR FOR OPERATIONS (EDO) |
| References | |
| NUDOCS 9304190237 | |
| Download: ML20035E779 (5) | |
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1 Portland General Bectric Company
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James E. Cross Vice President and Chief Nuclear Officer April 15, 1993 Trojan Nuclear Plant Docket 50-344
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License NPF-1 Executive Director for Operations U.S. Nuclear Regulatory Commission Washington DC 20555
Dear Sir:
Request for Exemption from Title 10 of the Code of Federal Regulations, Part 171 (10 CFR 171 h Annual Fees for Reactor Operatine Licenses Portland General Electric Company (PGE) is requesting an exemption from the requirements of 10 CFR 171 requiring payment of the annual licencing fee to the Nuclear Regulatory Commission (NRC). On January 27, 1993, PGE requested that a Possession Only License (POL) be issued for the Trojan Nuclear Plant. On Febreary 2, 1993, PGE certified to the NRC that the reactor fuel had been permanently removed from the reactor vessel at Trojan and placed in the spent fuel pool. By letter dated March 24, 1993, the NRC issued to PGE a confirmatory order prohibiting placing any nuclear fuel into the Trojan Nuclear Plant reactor building without prior approval in writing from the NRC. The basis for the requested exemption is submitted in the attachment to this letter.
Sincerely, T. D. Wait for J. E. Cross Attachment c:
Mr. John B. Martin Regional Administrator, Region V U.S. Nuclear Regulatory Commission l
Nuclear Regulatery Conniss on l
Atta: Document Control Desk Washingten DC 20555 I
l Mr. David Stewart-Smith l
19017 State of Oregon a Departmant of Energy O
Mr. Kenneth Johnston l
NRC Senior Resident inspector
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Trojan Nuclear Plant l
9304190237 930415 I!
l PDR ADOCK 03000344 21 SW Salmon Street, Portland, OR 97204 I
PDR 503/464-8897
Trojen Nuclear Plant Document Control Dask l
Docket 50-344 April 15, 1993 License NPF-1 Attachment Page 1 of 4 REQUEST FOR EXEMPTION FROM TITLE 10 0F THE CODE OF FEDERAL REGULATIONS, PART 171 (10 CFR 171). ANNUAL FEES FOR REACTOR OPERATING LICENSES Description of Exemption Request 10 CFR 171.15(a) states that.each person licensed to operate a power reactor shall pay the annual fee for each unit for which the person holds an operating license at any time during the Federal fiscal year (FY) in which the fee is due.
10 CFR 171.17 further indicates that withdrawal of authority to operate will not result in any refund of the annual licensing fee or any portion thereof. As a result of the permanent cessation of operation of the Trojan facility, justification exists for exempting Portland General Electric Company (PGE) from these regulations with respect to the annual fce for the Trojan operating license. PCE requests that it be refunded a portion of the FY 1993 annual licensing f ee paid thus far and that it be relieved from further payment of the annual licensing fee.
Basis for Exemotion Request By letters dated January 27, 1993, PGE informed the Nuclear Regulatory Commission (NRC) of its decision permanently ceasing operations at the Trojan Nuclear Plant and requested issuance of a Possession Only License (POL). Further, by letter dated February 2,1993, PGE informed the Commission that the Trojan reactor had been permanently shutdown and defueled, with the fuel placed in the spent fuel pool. By letter dated March 24, 1993, the NRC issued to PGE a confirmatory order prohibiting placing any nuclear fuel into the Trojan Nuclear Plant reactor building without prior approval in writing from the NRC.
According to 10 CFR 171.3, the regulations of Part 171 apply to any person holding an operating license for a power reactor. The definition of " operating license" in 10 CFR 171.5, specifically "does not include licenses that only authorize possession of special nuclear material after the Commission has received a request from the licensee to amend its license to permanently withdraw its authority to operate." Because the Commission has received PGE's request to amend the Trojan license to permanently withdraw PGE's authority to operate the Plant, the Part 171 annual licensing fee no longer applies with respect to Trojan.
Trojcn Nuclear Plant Docum:nt Control Denk Docket 50-344 April 15, 1993 License NPF-1 Attachment Page 2 of 4 Regardless that the annual licensing fee is no longer applicable with respect to Trojan, justification exists for granting exemptions from payment of the fee in future FYs and from payment of the full fee for i
FY 1993. In addition, justification " exists for granting an exemption allowing a refund of a portion of the FY 1993 fee paid thus far. The provisions of 10 CFR 171.ll(c) allow exemption for reactors frma the requirements of 10 CFR 171 taking into consideration age of the reactor.
size of the reactor, number of customers in the rate base, net increase in kilowatt-hour cost for each customer directly related to the annual fee assessed under this part, and any other relevant matter which the licensee believes justifies the reduction of the annual fee. PGE concludes from consideration of these factors that the activities sought to be conducted under this exemption request are clearly justified.
In regard to the first four factors listed in 10 CFR 171.11(c), on November 21, 1975 the Trojan Nuclear Plant was licensed to operate at steady state power levels not in excess of 3411 megawatts thermal.
However, PGE last operated the reactor at Trojan on November 9,1992 and on January 27, 1993 requested that a POL be issued in view of its decision to cease permanently operation of the Plant. Therefore, payment of the annual licensing fee in future FYs, payment of the fee for the remainder of FY 1993, and not being refunded the portion of the FY 1993 fees from the date when the NRC received PGE's request for a POL will result in a significantly disproportionate allocation of costs to PGE and its customers.
In regard to any other relevant matter which the licensee believes justifies the reduction of the annual fee, the following peragraphs provide discussion of additional bases justifying granting of this exemption request:
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Currently fees are collected under 10 CFR Parts 170 and 171. As published in the Federal Register (57 FR 32691) July 23, 1992, the Part 170 fees are billed for specific services rendered in response to an application filed with the NRC for review or an inspection conducted by the NRC, and the Part 171 fees are assessed to recover NRC generic and other regulatory costs. Because of the permanent shutdown of Trojan, the generic services and other regulatory activities relative to the operating license funded under 10 CFR 171 would be unrelated to Trojan. Payment of the cost of specific services for license action and for inspections would continue to be required under 10 CFR 170. Payment of the cost of generic services and other regulatory activities relative to the approval of the 10 CFR 71 quality assurance program for PGE as a user in the transportation of radioactive material would continue to be required under 10 Cnt 171.16.
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i Trojcn Nucicar Plcnt Document Control D:sk
-Docket 50-344 April 15, 1993 License NPF-1 Attachment Page 3 of 4 2.
In the Federal Register (57 FR 32691) published July 23, 1992, the NRC, based on their inability to respond in time to a large number of j
requests related to annual fees, made a special provision for certain licensees and holders of certificates, registrations, and approvals.
The NRC exempted from the FY 1992 annual fees those persons who either filed for termination of their licenses or approvals or filed for possession only/ storage only licenses during the period October 1, 1991 through December 31, 1991. Precedent was thereby-set for not requiring Part 171 fees where, because of unforeseen circumstances, the operating license (as defined in the regulation) was held for only part of the FY.
PGE's announcement on January 4, 1993 of its decision to cease permanently operation of the Trojan l
Nuclear Plant was based upon unforeseen circumstances of increasing uncertainty about Plant reliability and costs of operation,
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particularly as related to the steam generators, and the availability of lower cost replacement power.
10 CFR 171.13 ' states that if the Commission is unable to publish a notice during the first quarter of FYs 1992 through 1995, quarterly payments of the annual fees of $100,000 or more shall continue and be based on the applicable annual fees as shown 5 Section 171.15 of the regulations until such time that a notice coa erning the revised amount of the fees for the FY is published by the Commission. The annual licensing fees shown in Section 171.15 currently include Trojan as if it was an operating plant. The duration of the requested exemption should therefore begin with the NRC's receipt of the PGE letter dated January 27, 1993 requesting issuance of a POL and end when a notice is published addressing the issue of the annual licensing fee for the Trojan Nuclear Plant in the permanently-shutdown condition.
Conclusion Due to cessation of operations of Trojan, the NRC's receipt of PGE's request for a POL and issuance of a confirmatory order prohibiting placing any nuclear fuel into the Trojan Nuclear Plant reactor building, l
payment of the annual fee for the Trojan operating license is no longer justified. PGE should be fully exempted from payment of the Part 171 l
annual licensing fee beginning with the NRC's receipt of the PGE letter dated January 27, 1993 requesting issuance of a POL until such time that a notice is published addressing the issue of the annual licensing fee for the Trojan Nuclear Plant in the permanently shutdown condition. The FY 1993 annual licensing fee should be prorated based on the date of the NRC's receipt of PGE's January 27, 1993 letter, and a refund of the appropriate portion of the FY 1993 fees should be made to PGE.
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Trojan Nuclear Plcnt Docum:nt Control Desk
- Docket 50-344 April 15, 1993 License NPF-1
-Attachment i
Page 4 of 4 l
Potential Environmental Imnact i
Pursuant to the provisions of 10 CFR 171.11, PGE is requesting an exemption from requirements of 10 CFR 171 for the Trojan Nuclear Plant. The requested exemption is from payment of the annual licensing fee to the NRC. As such, the exemption will not result in an increase in the licensed power level or a i
change in Plant configuration. Furthermore, there is no change in'the type or l
quantity of radioactive or non-radioactive effluents. Therefore, the proposed l
examption does not involve an environmental impact.
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LGD/ inn 7460W.0493(2)
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