ML20062H060
| ML20062H060 | |
| Person / Time | |
|---|---|
| Site: | Seabrook  |
| Issue date: | 11/26/1990 |
| From: | Feigenbaum T PUBLIC SERVICE CO. OF NEW HAMPSHIRE |
| To: | NRC OFFICE OF INFORMATION RESOURCES MANAGEMENT (IRM) |
| References | |
| NYN-90203, NUDOCS 9012040066 | |
| Download: ML20062H060 (3) | |
Text
..
i iNeNHampshire Y
Ted C. Feigenbaum President and Chief Executive Ofiker NYN 90203 Nove n.ber 26, 1990 United States Nuclear Regulatory Commission
'I Washington, D.C.
20555 Attention:
Document Control Desk
. Refere nces: '(a)-
Facility Operating License No. NPF 86, Docket No. 50 443 i
(b)
NRC letter dated November 15,1990, "Scabrook Decommissioning Bond",
E. J. Leeds to T. C. Feigenbaum (c).
Letter dated October 31, 1990 from D. Curran to J, Scinto, with enclosed pages-from Form 10 0 for the period ended June 30, 1990 filed by EUA Power Corporation (d)
Surety Bond No. 80 S 100556G33, dated March 20, 1989, issued by The Aetna Casualty and Surety Company
Subject:
Seabrook Decommissioning Bond Gentleman:
{
This correspondence responds ;to your letter of November 15,1990 (Reference b)-
requehing' information as to the status of the $72.1 million Surety Band (Reference d) in-1.ight of the questions raised by Ms. Curran in'her letter of October 31,1990 (Rcierence c).
First, let me. assure you that the Surety Bond remains' in full force and effect, and by its own terms will extend until the earlier of "a final non appealable regulatory or judicial idetermination that Seabrook Project has' been granted a license by the NRC to operate in any manner (whether at." full power"' or otherwise) other than as contemplated by. the issuance of the, license for low power testing" or a final decision that "no:further Pre Op Decommissioning-is ' required".
Neither of those events.has yet occurred.'. The Aetna Casualty and Surety-Company (Aetna) continues to be obligated 'under the Surety Bond-(Reference' d) cand the Seabrook Joint Owners, including EUA Power, continue to bc obligated to pay their respective shares of decommissioning costs, including the " Pre.Op
'. Decommissioning" costs.
The " decommissioning fund" to which Ms. Curran alludes in her letter was established by EUA Power Corporation ini November, 1986, at the time it purchased interests in Seabrook Project from five other utilities (the " Departing Participants"). In connection with that transfer, EUA Power Corporation assumed all the obligations of the Departing Parti-
[O[$Obh b f
I i
~~v New Hampshire Yankee Division of Public Service Company of New Hampshire 0g' P.O. Box 300
- Seabrook, NH 03874
- Telephone (603) 474 9521 0
United States Nuclear Regulatory Commission November 26, 1990 Attention: Document Control Desk Page two cipants with respect to Seabrook Project. As a condition to their consent to the transaction, however, the remaining Seabrook Joint Owners required that EUA Power provide a $10 million escrow fund for the benefit of the other Seabrook Joint Owners to secure its assumed decommissioning obligations. This collateral was to continue until either Eastern Utility Asscciates (EUA) unconditionally guaranteed EUA Power's obligation or EUA Power entered into "take or pay
- power contracts with other utilitics acceptable to the remaining Joint
- Owners, in Ma.ch,1989, when the St Bond was issued, since Aetna was providing assurance against defaults by any Joint
- r, Aetna requested and obtained a beneficial interest in that escrow fund in order for
,ina to assure that such fund would be applied toward EUA Power's decommissioning ou gations.
As described in the Form 10 0 forwarded to the NRC by Ms. Curran, in May,1990, EUA furnished to the other Seabrook Joint Owners and Aetna an unconditional guaranty of EUA Power's decommissioning obligations with respect to Seabrook which wa: substituted for the 1986 escrow fund and permitted the release of that fund to EUA Power in accordance with the agreement among the parties. That release in no way affected the obligation of Aetna under the Surety Bond to pay any ' defaulted payments
- up to the aggregate of $72.1 million.
I trust this explanation clarifies the distinction between the ' Surety liond' Issued in 1989 to comply with CLI 8810 and the ' decommissioning fund" established in 1986 to satisfy conditions imposed by the other Joint Owners, if you have any further questions, please do not hesitate to contact Mr. John Hart at (603) 474 9521, extension 2762.
l Very truly yours, h&
M 8W Ted C. Feige inum i
I TCF:JilH/ tad cc:
Mr. Thomas T. Martin Regional Administrator United States Nuclear Regulatory Commission Region !
475 Allendale Road i
King of Press!a. PA 19406 L
Mi, Noel Dudley i
NRC Senior Resident inspector P,0. Box 1149 l
l Seabrook, NH 03874 1
1 l
' Eric J. Leeds, Acting Project Manager j
Project Directorate 13 Division of Reactor Projects 1/11
.j United State. Nuclear Regulatory Commission l
Washington, DC 20555
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Novemb'er 26, 1990 NYN 90203 SEABROOK DECOMMISSIONING BOND Garfield, O DB&H Gram, O. R.
04 44 Kacich, R. M.
NUSC Kline, G. J.
02 08 Krohn, R. L.
49 CE Maglathlin, L. E., Jr.
PSNH McLain, D. G.
02 10 Moody, D. E.
49 SS Opeka, J. F.
NUSC Sweeney, R. E.
Bethesda Richardson, P. M.
09 15 Temple, W. J.
01 48 Tsouderos, O YAEC Vargas, J. M.
01 62
.l Warnock, J. J.
02 07 Ropes and Gray Boston Executive Offices 01 40 LIC Routing Offices 01 48 File 0800 01 48 i
File 0001-01 48 RMD 02 06 e
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