ML20043B860
| ML20043B860 | |
| Person / Time | |
|---|---|
| Site: | Maine Yankee |
| Issue date: | 05/24/1990 |
| From: | Nichols S Maine Yankee |
| To: | NRC OFFICE OF INFORMATION RESOURCES MANAGEMENT (IRM) |
| Shared Package | |
| ML20043B861 | List: |
| References | |
| MN-90-52, SEN-90-155, NUDOCS 9005310412 | |
| Download: ML20043B860 (7) | |
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MaineVankee REUABLE ELECTRICITY f OR MAINE SINCE 1972 EDISON DRIVE. AUGUs1A, MAINE 04330. (207) 622 4868 -
f May 24, 1990 MN-90-52 SEN-90-155 UNITED STATES NUCLEAR REGULATORY COMMISSION
. Attention: : Document Control Desk-Washington, DC 20055:
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(a)L License No' DPR 36 (Docket No. 50-309)
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References:
(b)' 10 CFR ss 50.33(k)(2) and 10 CFR ss 50.75(b)
-(c)' FR 24018 Vol. 53 No.123, June-12,1988 l
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Subject:
Maine: Yankee Decommissioning Funding Assurance Report and Certification
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. L k. Gentlemen:-
In accordance with references (b) and (c) above, we are enclosing Maine-iYankee's Decommissioning Funding-Assurance Report and Certification.
'i Please contact me should you have further questions.
Very truly yours,
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S. E. Nichols Licensing Section Head SEN:SJJ--
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Mr., Thomas T. Martin i
Mr. Cornelius-F. Holden Mr. Eric J. Leeds i:
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P OCK 00009309 Q0 PDC 3
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- s pr MAINE YANKEE ATOMIC POWER COMPANY DECOMMISSIONING FUNDING ASSURANCE ~
REPORT AND CERTIFICATION-SUBMITTED PURSUANT TO 10 CFRis50.33(k)(2) AND 10 CFRis50.75(b)
MAINE YANKEE ATOMIC POWER COMPANY (1
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WISCASSET, MAINE u
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INTRODUCTION q
This report is being submitted by Maine Yankee Atomic Power Company (" Maine.
Yankee" or the " Company"), incorporated under the laws of the State of Maine on January 3, 1966.
Maine Yankee owns and operates a pressurized-water nuclear-powered electric generating plant at Wiscasset, Maine _ (Facility Operating License l
No. DPR-36), with.a current capability of 2700 megawatts thermal. This report is - filed pursuant. to 10. CFRii50.33(k)(2) and 50.75(b) for the purpose of
" indicating how reasonable assurance will be provided that funds will be i
available to decommission the facility". The information contained in the report addresses.the licensee's-- compliance with 10 CFRin50.75 and the implementing 1
requirements of the Draft Regulatory Guide prepared by the Staff.
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The Plant 1
The Plant was declared commercial on December 28, 1972, with regular commercial operation starting on January 1,1973.
Hearings on the Company's-application for an operating license were completed in 1972 and an interim 75%
q of rated power license was issued on September 15, 1972. The full power license 1
(2440 megawatts thermal) was granted by the Atomic Energy Commission, the predecessor of the United States Nuclear Regulatory Commission ("NRC"), on June i
29, 1973, in 1978 the NRC authorized an increase in the thermal output rating _
of the Plant from 2,440 to approximately 2,630 megawatts thermal and in 1989 the Company was authorized an increase to 2700 megawatts thermal.
The Comoany As a seller of electricity solely at wholesale to purchasers who resell the electricity, Maine Yankee's electric rates are subject to the regulatory jurisdiction and approval of the Federal Energy Regulatory Commission ("FERC")
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P' hr components of rates, including any-charges relating to decommissioning cost i
I recovery.
-The Company has Power Contracts with its customers, that are filed with the FERC as part of its filed rates, that provide for the collection of I
decommissioning costs regardless of the operation of the unit.
See Exhibit 5.
9 D1qommissionino Discussion f
The Company began collecting annual decommissioning charges of $1,826,100 on December 7, 1981.
An April 1985 FERC order increased the collection of an annual decommissioning charge to $4,000,000. The order was subsequently amended in June 1987 to allow the annual collection of $4,796,000.
In.1988, the Company filed with the FERC for an increase in the amount collected for decommissioning based on the Company's most recent study (Exhibit 1), conducted in 1987 by an external engineering consultant, which estimated decommissioning costs to be $142,478,000 plus a contingency of $35,620,000 for a total of $178,098,000 (in mid-1987 dollars). This estimate also includes the L
cost of decommissioning non-radioactive components of the plant site which is estimated to amount to $31,131,000.
The FERC approved new rates effective on
- August 16, 1988, in an order dated September 20, 1988, which authorized the Company _to increase its annual collection for decommissioning to $9,073,943, L
based on estimated decommissioning costs of $167,000,000 (in mid-1987 dollars).
The new rate included assumptions of an annual inflation of 5% for
- decommissioning and trust fund earnings of 6.30% after taxes. Based on the FERC
- approved $167,000,000 and 5% inflation, the December 1989 dollar basis for decommissioning collections is $188,720,000. This estimate includes the costs for decommissioning non-radioactive components of the plant site in the amount l
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- of:$33',026,000 for a: net ' decommissioning cost, as defined, in the amount of
$155,'694,000.
This compares favorably to the financial assurance-amount calculated in accordance with 10 CFR 5i50.75 of $134,837,028 at December 31, 1989 (See Exhibit 4).
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The Company recognizes the relative uncertainty of decommissioning, the changing technology of decommissioning and the possibility of new requirements of law and therefore recognizes the need to monitor.and adjust decommissioning collections through' future supplemental rate filings, i
COMPLIANCE WITH 10 CFR h 0.33(k)(2) AND 50.75(b) 5 1.
The Company owns a 100% undivided interest in the Maine Yankee Atomic Power Station (unit).
.2, The Company hereby certifies that financial assurance for decommissioning the unit is provided in the amount of $134,837,028 at December 31, 1989.
The calculation of this amount is set forth in Exhibit 4 and complies with the formula set forth in 10 CFRii50.75(c).
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The - method by which the - Company will provide financial assurance for decommissioning the unit will be by:
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Contributions into external trust funds of amounts the Company bills monthly to its customers for decommissioning the unit under our FERC approved rates (Exhibit 2).
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The Company's executed wholesale customer power contracts provide for payments to Maine Yankee for the total decommissioning costs j
regardless of actual operation of the plant (Exhibit 5).
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Attached as Exhibit 3 to this decommissioning report is a copy of the j
currently executed external Decommissioning Trust document. This trust 3
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was created to conform'to. IRS Code Section 468A.
The trust conforms ~to:
the requirements of an external sinking fund within the meaning of.
10 CFRis50.75(e)(ii) and the draft Regulatory Guide issued May 1989.-
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Attached as Exhibit 2 to this decommissioning report is a copy of the FERC-Settlement agreement which provides the basis and-schedule of. amounts billed.for decommissioning on a monthly basis.
Maine Yankee Atomic Power Company By b Lee E. Maillet,. Treasurer l
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List of Exh'ibits I
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ExhibitLl:-
TLG Engineering Inc., Decommissioning Study for the Maine Yankee Atomic Power Station, dated December 1987.
Exhibit 2:
Federal-Energy Regulatory Commission Order of September 20, 1988, Docket No, ER88-202,
' Exhibit'3:;
Maine Yankee Decommissioning Trust (Master Trust), dated as of March 14, 1988.
Exhibit 4:
Details of calculation of 10 CFR 50.75(c).
Exhibit 5:
Power Contracts.
Original Power Contract with Amendment for Decommissioning.
Additional Power Contract with Provision on Decommissioning, l-u l
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