ML20092G687

Forwards Standby Trust Agreement Between Util & Mellon Bank & Irrevocable Standby Ltr of Credit as Evidence of Financial Assurance for Decommissioning

ML20092G687
Person / Time
Site:	Monticello, Prairie Island
Issue date:	02/14/1992
From:	Parker T NORTHERN STATES POWER CO.
To:	NRC OFFICE OF INFORMATION RESOURCES MANAGEMENT (IRM)
References
NUDOCS 9202200280
Download: ML20092G687 (19)

Text

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Northem States Power Company

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414 Nicohet Mall Minneapohs, Minnesota $54011927 Telephone (612) 3345500 February 14, 1992 10 CFR Part 30 Section 30.35 U S Nuclear Regulatory Commission Attn:

Document Control Desk Washington, DC 20555 MONTICELID NUCLEAR GENERATING PLANT Docket No. 50 263 License No. DPR-22 PRAIRIE ISLAND NUCLEAR GENERATING PIANT Docket Nos. 50-282 License Nos. DPR-42 50 306 DPR 60 Financial Assurance for Decommissioning In compliance with 10 CFR Part 30 Section 30.35, the decommissioning report required for the Northern States Power Company License No. 22-08799-09 is hereby being submitted.

Northern States Power Company, the sole owner of License No. 22 08799 09, certifies that financial assurance for decommissioning is provided in the amount of $750,000.

This amount complies with the table set forth in 10 CFR Part 30 Section 30,35(d). The method by which the financial assurance will be provided will be by surety method with a letter of credit.

Attached as Exhibit A is the executed standby trust instrument-for the letter of credit.

Exhibit B, the executed letter of credit, is also attached.

Please contact us if you require additional information related to this decommissioning report.

/Je49 #lica ' Thomas M Parker Manager Nuclear Support Services c: Regional Administrator - Region III Attachments: Exhibit A Executed Standby Trust Exhibit B Executed Letter of Credit f 9202200280 920214 PDR ADDCK 05000263 fg I PDR i'i t .)

[;/ lie 02NED FER 0 51992 CCElliidMIAhf Mellon Bank sn*[M,jjfddcuter Pittsburgh, PA 15258-0001 412 234 7538 James G. Miller ^"I5'""t Vice President February 4.1992 John W. liaine Esq. Nonhern States Power c/o Law Department 414 Nicollet Mall Minneapolis, MN 55401

Dear John:

Enclosed are two executed copies of the Standby Tmst. Agreement between Northern States Power and Mellon Bank. I have kept an original for our file. Regarding our discussion of the validity of the trust, we do need some fonn of corpus. We will, therefore, be depositing a dollar into an account which we will open for both this Standby Trust and the Pathfinder Standby Trust. In addition, to allow us to verify both the existence of a letter of credit for both trusts and that both letters of credit are payable to Mellon as trustee, we need to have on file a copy of both letters of credit. Please let me know if you have any questions regarding the above. Thank you for your consideration of the above. Sincerely, an s G. Miller GM/kik Er closures 2727/50 __ n

NUCLEAR DECOMMISSIONING STANDIlY TRUST AGREEMENT Tills NUCLEAR DECOMMISSIONING STANDBY TRUST AGREEMENT (" Agreement"), dated as of the 28th day of January,1992, between NORTHERN STATES POWER COMPANY, a corporation duly organized and existing under the lav s of the State of Minnesota, having its principal office at 414 Nicollet Mall, Minneapolis, e st 4 Minnesota 55401 (the " Company"), and MELLON d ANK, N.A., as Trustee, a national f banking association having its principal of0ce at One Mellon Bank Center, Pittsburgh, Pennsylvania,15258 (the " Trustee"); WITNESSETH: WHEREAS, the U. S. Nuclear Regulatory Commission ("NRC"), an agency of the U. S. Government, pursuant to the Atomic Energy Act of 1954, as amended, and the Energy Reorganization Act of 1974, has promulgated regulations in Title 10, Chapter I of the Code of Federal Regulations, Part 30, relating to the licensing of byproduct material. These regulations, applicable to the Company, require that a holder of, or an applicant for a license issued pursuant to 10 CFR Part 30 authorizing the possession and use of cenain byproduct material (a " License"), provide assurance that funds will be available when needed for required decommissioning activities. l WHEREAS, the Company desires to establish pursuant to this Agreement a fund which does not qualify as a Nuclear Decommissioning Reserve Fund under section 468A l of the Internal Revenue Code of 1986, as amended, or any corresponding section or sections of any future United States internal revenue statute (the " Code") and the regulations thereunder (the " Standby Fund"), under the laws of the Commonwealth of Pennsylvania to provide all of such financial assurance; WHEREAS, the Company has elected to use a letter of credit to provide all of such financial assurance; i

WIIEREAS, when payment is made under a letter of credit, this Standby Trust shall be used for the receipt of such payment; WHEREAS, the Company has selec:ed the Trustee to provide the specialized services hereinafter set forth because of the experience and administrative expertise of the Trustee to handle the elaborate record keeping and filings necessary to the maintenance of this nuclear decommissioning Standby Fund; WHEREAS, the execution and delivery of this Agreement have been duly authorized by each of the Company and the Trustee and all things necessary to make this Agreement a valid and binding agreement by each of the Company and the Trustee have been done. NOW, THEREFORE, THIS AGREEMENT W'ITNESSETH, that to provide for the creation of the Standby Fund and the making of-payments therefrom and the-perfonnance of the covenants of the Company and the Trustee set forth herein, the Company does hereby sell, assign, transfer, set over and pledge unto the Trustee, and to its successors in the trust and its assigns forever, all of the Company's right, title and interest in and to any and all cash and property herewith'and hereafter contributed to the Standby Fund, TO HAVE AND TO HOLD THE S AME IN TRUST for the exclusive purpose of providing funds-for decommissioning, to' pay the ' administrative costsLand other - incidental expenses'of the Standby Fund, and to make certain investments,- all as: hereinafter provided. ARTICI E I Purcoses of the Funds

• Contributions Section 1.01. Establishment of the Fund.-.The ':andby Fund shall be maintained-at all times in the United States pursuant to this Agree tent and as a trust in accordance with the laws of the Commonwealth of Pennsylvania.

Section 1.02. Purooses of the Fund. The Standby Fund is established for the 2 i i

exclusive purpose of providing decommissioning funds for the benefit of the public health and safety. None of the assets of the Standby Fund shall be subject to attachment, garnishment, execution or levy in any manner for the benefit of creditors of the Company. Section 1.03. Contributions to the Fund. The assets of the Standby Fund shall be contributed by the Company (or by others approved in writing by the Company) from time to time. ARTICLE 11 Payments by the Trustee Section 2.01. Limitation on Use of Assets. The assets of the Standby Fund shall be used exclusively (a) to satisfy, in whoL: or in part, any expenses or liabilities incurred by or on behalf of the Company with respect to decommissioning subject to the Company's License, including expenses incurred in connection with the preparation for decommissioning, such as engineering and other planning expenses, and all expenses incurred after the actual decommissioning occurs, such as physical security and radiation monitoring expenses (the " Decommissioning Costs"), (b) to pay the administrative costs and other incidental expenses of the Standby Fund separately from the assets of the Standby Fund, and (c) to invest in securities and investments as directed by the investment manager (s) pursuant to Section 3.02(a) or the Trustee pursuant to Section 3.02(b). Section 2.02. Certification for Decommissioning costs. If assets of the Standby Fund are required to satisfy Decommissioning Costs, the Company shall present a certificate substantially in the form attached hereto as Exhibit A to the Trustee signed by its Chainnan of the Board,its President or one ofits Vice Presidents and its Treasurer or - an Assistant Treasurer, requesting payment from the Standby Fund. Any certificate requesting payment by the Trustee to a third party or to the Company from the Standby 3 )

4 Fund for Decommissioning Costs shall include the following: (a) a statement of the amount of the payment to be made from the Standby Fund; (b) a statement that the payment is requested to pay Decoinmissioning Costs which have been incurred; (c) the nature of the Decommissioning Costs to be paid; (d) the payee, which may be the Company in the case of reimbursement for payments previously made or expenses previously incurred by the Company for Decommissioning Costs; (e) a statement that the Decommissioning Costs for which payment is requested i have not theretofore been paid out of funds of t,he Standby Fund; and (f) a statement that any necessary authorizations of the Minnesota Public Utilities Commission (the "PUC") and/or any other governmental agencies having jurisdiction with respect to the decommissioning have been obtained. The Trustee shall retain at least one counterpart of all copies of such certificates (including attachments) and related documents received by it pursuant to this Article II. The Company shall have the right to enforce payments from the Standby Fund upon compliance with the procedures set forth in this Section 2.02. i Section 2.03. Administrative Costs. The Trustee shall pay, as directed by the -l Company, the administrative costs and other incidental expenses of the Standby Fund, including all federal, state and local taxes, if any, imposed directly on the Standby Fund,_: i legal expenses, accounting expenses, actuarial expenses and trustee expenses, from the assets of the Standby Fund. ARTICLE III Conceming The Trust Section 3.01. Authority of Trustee. The Trustee hereby accepts the trust created under this Agreement. The Trustee shall have the authority and discretion to manage and -4

control the Standby Fund to the extent provided in this Agreement but does not guarantee the Standby Fund in any manner against investment loss or depreciation in asset value or guarantee the adequacy of the Standby Fund to satisfy the Decommissioning Costs. The Trustee shall not be liable for the making, retention or sale of any investment or reinvestment made by it, nor shall the Trustee be responsible for any other loss to or diminution of the Fund, or for any other loss or damage which may result from the discharge of its duties hereunder except for any action not taken in good faith. Section 3.02. Investment of the Fund. (a) The Company shall have the authority to appoint one or more investment managers (which may include the Company) who shall have the power to direct the Trustee in inyesting the assets of the Standby Fund. To the extent that the Company chooses to exercise this authority, it shall so notify the Trustee and instruct the Trustee in writing to separate into separate accounts those assets the investment of which will be directed by each investment manager. The Company shall designate in writing the person or persons who are to represent any such investment manager in dealings with the Trustee. Upon the separation of the assets in accordance with the Company's instructions, the Trustee, as to those assets while so separated, shall be released and relieved of all investment duties, investment responsibilities and investment liabilities normally or statutorily incident to a trustee. The Trustee shall retain all other fiduciary duties with respect to assets the investment of which is directed by investment managers. (b) To the extem that the investment of assets of the Standby Fund is not being directed by one or more investment managers under Section 3.02(a), the Trustee shall hold, invest, and reinvest the funds delivered to it hereunder as it in its sole discretion deems advisable. (c) Upon the written consent of the Company, the assets of the Standby Fund may be pooled for the purpose ofinvesting the assets with the assets of any other nuclear decommissioning funds established by the Company or any other utility for which the 5

Trustee serves as trustee of the nuclear decommissioning fund, provided the following conditions are satis 0ed: (i) the trustee of each nuclear decommissioning fund must separately account for the contributions. earnings, expenses, and distributions of such fund; (ii) the earnir.gs and expenses must be reasonably apportioned among such nuclear decommissioning funds; (iii) if assets of a nuclear decommissioning reserve fund under section 468A of the Code ("Quali0ed Fund") ere pooled with assets of any other nuclear decommissioning fund, all such pooled assets must be invested solely in permissible assets as described under section 468A of the Code and the regulations thereundert and (iv) the books and records of such funds must enable the Intemal Revenue Service to verify that the requirements of section 468A of the Code and the regulations thereunder are satisfied; provided further, however, that the assets of any trust fund may not be pooled for the purpose of investing the assets with assets of any nuclear decommissioning fund, whether established by the Company or any other utility, unless and until the Company notifies the Trustee in writing that the Trustee shall not be liable and shall be held harmless if such pooling results in a Qualified Fund failing to qualify as a nuclear decommissioning reserve fund under section 468A of the Code. Section 3.03. Prohibition Against Self-Dealing. Notwithstanding any other provision in this Agreeme.it, the Trustee shall not engage in any act of self-dealing as defined in section 468A(e)(5) of the Code and Treas. Reg. {l.468A-5(b) or any corresponding future Treasury Regulation. Section 3.04. Comoensation. The Trustee shall be entitled to receive out of the Standby Fund reasonable compensation for services rendered by it, as well as expenses necessarily incurred by it in the execution of the trust hereunder. Section 3.05 Books of Account. The Trustee shall keep true and correct books. of account with respect to the Standby Fund, which books of account shall at all reasonable times be open to inspection by the Company or its duly appointed representatives. The Trustee shall, upon written request of the Company, permit 6

government agencies, such as the PUC or the Internal Revenue Service, to inspect the books of account of the Standby Fund. The Trustee shall furnish to the Company by the tenth business day of each month a statement for the Standby Fund showing, with respect to the preceding calendar month, the balance of assets on hand at the beginning of such month, all receipts, investment transactions, and disbursements which took place during such month and the balance of assets on hand at the end of such month. The Trustee agrees to provide on a timely basis any information deemed necessary by the Company to file the Company's federal, state and local tax retums. Section 3.06. Reliance on Documents. The Trustee, upon receipt of documents furnished to it by the Company pursuant to tlye provisions of tiiis Agreement, shall examine the same to determine whether they conform to the requirements thereof. The Trustee acting in good faith may conclusively rely as to the truth of statements and the correctness of opinions expressed in any certificate or other documents conforming to the requirements of this Agreement. If the Trustee in the administration of the Standby Fund shall deem it necessary or desirable that a matter be provided or established prior to taking or suffering any action hereunder, such matter (unless evidence in respect thereofis otherwise specifically prescribed hereunder) may be deemed by the Trustee to be conclusively provided or established by a certificate signed by the Chairman of the Board, the President or any Vice President of the Company and delivered to the Trustee. The Trustee shall have no duty to inquire into the validity, accuracy or relevancy of any statement contained in any certificate or document nor the authorization of any party making such certificate or delivering such document and the Trustee may rely and shall be protected in acting or refraining from acting upon any such written certificate or document fumished to it hereunder and believed by it to be genuine and to have been signed or presented by the proper party or parties. The Trustee shall not, however, be relieved of any obligation to refrain from self-dealing as provided in Section 3.03 hereof.. Section 3.07. Liability and Indemnification. The Trustee shall not be liable for 7 I o

I any action taken by it in good faith and without negligence and believed by it to be authorized or within the rights or powers conferred upon it by this Agreement and may consult with counsel of its own choice (including counsel for the Company) and shall have full and complete authorization and protection for any action taken or suffered by it hereunder in good faith and without negligence and in accordance with the opinion of such counsel, provided, however, that the Trustee shall be liable for any consequences resulting from self-dealing as provided in Section 3.03 hereof. The Company hereby agrees to indemnify the Trustee for, and to hold it harmless against, any loss, liability or expense incurred without negligence, recklessness or bad faith on the part of the Trustee, arising out of or in connection with its entering into this Agreement and canying out its duties hereunder, including the costs and expenses of defending itself against any claim ofliability in the premises, providing such loss, liability or expense does not result from self-dealing under Section 3.03 hereof. Section 3.08. Resignation. Removal and Successor Trustees. The Trustee may resign at any time upon thirty (30) days written notification to the Company. The Company may remove the Trustee for any reason at any time upon thirty (30) days written notification to the Trustee. Any successorTrustee appointed hereunder shall be an independent trustee. If a successor Trustee shall not have been appointed within thirty (30) days after the giving of written notice of such resignation or removal, the Trustee or Company may apply to any court of competent jurisdiction to appoint a successor Trustee to act until such time, if any, as a successor shall have been appointed and shall have accepted its appointment as provided below. If the Trustee shall be adjudged bankrupt or insolvent, a vacancy shall thereupon be deemed to exist in the office of Trustee and a successor shall thereupon be appointed by the Company. Any successor Trustee appointed hereunde shall execute, acknowledge and deliver to the Company an appropriate written instrument accepting such appointment hereunder, subject to all the terms and conditions hereof, and thereupon such successor Trustee shall become fully 8 J

._. ~ vested with all the rights, powers, trusts, duties and obligations ofits predecessor in trust hereunder, with like effect as if originally named as Trustee hereunder. The predecessor Trustee shall upon written request of the Company, and payment of all fees and expenses, deliver to the successor Trustee the corpus of the Standby Fund and perfomi such other acts as may be required or be desirable to vest and confirm in said successor Trustee all right, title and interest in the corpus of the Standby Fund. Section 3.09. Merger of Trustee. Any corporation into which the Trustee may be merged or with which it may be consolidated, or any corporation resulting from any merger or consolidation to which the Trustee.shall be a party, or any corporation to which the corporate trust functions of the Trustee may be transfened, shall be the successor Trustee under this Agreement without the necessity of executing or filing any additional acceptance of this Agreement or the performance of any further act on the part of any other parties hereto. ARTICLE IV Amendments The Company may amend this Agreement from time to time. If a proposed amendment shall affect the responsibility of the Trustee, such amendment shall not be considered valid and binding until such time as the amendment is executed by the Trustee. ARTICLE V Termination The Standby Fund shall terminate upon termination by the NRC of the Company's License, Upon termination of the Standby Fund, the assets of the terminated Fund shall be distributed in accordance with any written directive of the -PUC concerning termination of such Fund. Absent a written directive of the PUC within thirty (30) days after the PUC is notified of the termination, all of the assets shall be distributed to the 9

r-Company. Prior to distribution of the assets of the Standby Fund, the Company shall provide the Trustee with notification that the Standby Fund has terminated and with either (i) the PUC written directive or (ii) a certificate signed by its Chairman of the Board, its President or one of its Vice Presidents and its Treasurer or an Assistant Treasurer stating that there is no PUC written directive and that thirty (30) days have elapsed since notification to the PUC of termination, as the case may be. ARTICLE VI Miscellaneous Section 6.01. Binding Agreement. All covenants and agreements in this Agreement shall be binding upon and inure to the benefit of the respective parties hereto, their successors and assigns. Section 6.02. Notices. All notices and communications hereunder shall be in writing and shall be deemed to be duly given on the date mailed if sent by registered-mail, return receipt requested, as follows: MELLON B ANK, N. A. Trust and Investment Department ATfN: Trust Administration Room 151-3346 One Mellon Bank Center Pittsburgh, PA-15258 Northern States Power Company Attn: Vice President, Law 414 Nicollet Mall Minneapolis,MN 55401 or at such other address as any of the above may have furnished to the other parties in writing by registered mail, return receipt requested. Section 6.03. Governing Law. The Standby Fund has been established pursuant to this-Agreement in accordance with the requirements for a trust under the laws of the 10 l-m _a-

Commonwealth of Pennsylvania, and this Agreement shall be governed by and construed and enforced in accordance.with the laws of the Commonwealth of Pennsylvania. Section 6.04. Countercarts. This Agreement may be-executed in several-counterparts, and all such counterparts executed and delivered, each an original, shall constitute but one and the same instrument. IN WITNESS WilEREOF, the Company has caused this Agreement to be signed in its corporate name by one ofits Vice Presidents, and its corporate seal to be affixed hereunto, and the same to be attested by its Secretary or one ofits Assistant Secretaries; and Mellon Bank, N.A. has caused this Agreement to be signed in its' corporate name by one of its Vice Presidents, and its corporate seal to be affixed hereunto, and the same-to be attested by one ofits Assistant Secretaries or one of its Trust Officers. WITNESS the due execution and_ ensealing hereof the day and year first above - 1 WrittCn. Northern States Power Company A'ITEST: Na ed L D n~ - By: c $ecretary - ( Vice# resident P [ Corporate Seal] MELLON B ANK, N.A. ATTEST: By:- + - Vice President- /- R [ Corporate Seal] [ SQ3g[,, *,, il Q 4 -.. _ ) j 9 umu ~- J

STATE OF U** 1 /uma )SS-i COUNTY OF T On this Rvo day of IE mm a('Y .19 'M, before me, the undersigned Officer, a Notary Public in and for said State and County, personally appeared._ I2 V n o t' D SIM4^9 . who acknowledged himself to be a _ VICE PRESIDENY' of llt-LL ou bAMu kl 4 .a fW N ar corporation, and that he as such being authorized to do so executed the foregoing Agreement for the purposes therein contained by signing the name of I2tm ^ t V E'TIA 084 ^ S by himself as ViCE PRESIDENT IN WITNESS WHEREOF, I have hereunto set my hand and official seal. O w u L 4_ h.' D d t 1 / & L. t Notary Public My Commission expires: tu P 'm 3-1-3 sj y m en s - IE~% ant jtaia /vne:Meul ot }UJ tm o STATE OF MINNESOTA ) )SS. COUNTY OF HENNEPIN ) On this 28th day of January,1992, before me, the undersigned Officer, a Notary Public in and for said State and County, personally appeared Roger D. Sandeen, who acknowledged himself to be a Vice President of Northern States Power Company, a Minnesota corporation, and that he as such being authorized to do so executed the 12 s

foregoing Agreement for the purposes therein contained by signing the name of Roger D. Sandeen by himself as Vice President. IN WITNESS WlIEREOF, I have hereunto set my hand and official seal. D'k. (9(aAO ,e .tu,ws Notary Public My Commission expires: I b = l 13

Exhibit A to the Nuclear Decommissioning. Standby Trust Agreement CERTIFICATE FOR PAYMENT OF DECOMMISSIONING COSTS [Name of Trusee], as Trustee [ Address) This Certificate is submitted pursuant to Section 2.02 of the Nuclear Decommissioning Trust Agreement, dated ,19._, between Mellon Bank, N.A. (the " Trustee") and Northern States Power Company,.a Minnesota corporation, (the " Company") (the " Agreement"). All capitalized terms used in this-Certificate and not otherwise defined herein shall have the meanings assigned to such terms in the Agreement. In your capacity as Trustee, you are hereby authorized and requested to disburse to the amount of $ from the Standby Fund for the payment of the Decommissioning Costs which have been incurred. With respect to such Decommissioning Costs, the Company hereby certifies as follows:

1. The amount to be disbursed pursuant to this Certificate shall be solely used for the purpose of paying the Decommissioning Costs described in Schedule A hereto.

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2. None of the Decommissioning Costs described in Schedule A hereto has l

previously been made the basis of any certificate pursuant to Section 2.02 of the l Agreement.-

3. Any necessary authorizations of the PUC or any corresponding govemmental authority having jurisdiction over the decommissioning have been obtained.

A-1 l

IN WITNESS WilEREOF, the undersigned have executed this Certificate in the capacity shown below as of By Name:

Title:

By-Name:

Title:

1 1 A-2

^ First Bank k ) Na_bo,nal A,,,sz_oahon , v. o. t.., ,s FIRST BANK NATIONAL ASSOCIATION, P.O. BOX A1567 MINNEAPOLIS, MINNESOTA 55480 f ir st Bank Nationet A s s ocia t mn. In t e r tia t ion al Banking Group. Fust Bank Piet e 200 Soutti Sinth Street, Minneapobs MN 55402 Phon. 012 370 4881 e Calde firs T B ANK. MPS e T eles IRT 19?179 FBNA INTL MPS e S.W.! F.T FNBMUS44 NORTHERN 5TA1Eb POWEH COMPANY AiIN: LASH AND Bnf W I NEr 414 NICut ! El MA! L M I NNE A s01. I S, M I Nf EWI A 55401 tDNUARY 'f/, 1992 8* PAGE 1WD 0e 2 (n o tA l t s APPi I C ANT A'JD THE NRC OF ANY NOTICE RECEIVED OR AC110N FILED hh ALLEGING (1) THE INSOLVENCY OR GANKRUPTCY OF THE FINANCIAL tjy INSTilullON OR ( 2 ~) ANY VOL Al l ONS OF REGULATORY REQUIREMENTS THAT gi COULD RESULT IN St1SPENGION OR REVOCATION OF THE BANK'S CHARTER OR yy LICENSE 10 DO HUSINESD. THE FINANCIAL INST 11UTlON ALSO SHALL GIVE gg IMMEDIATE r OTICE IF THE BANK, FOR ANY REASON. BECOMCS UNABLE 10 83 FUL F ILL.115 OPL ] gal lON UNDER 1HE LETTER OF CREDIT. 8u 8{E [ WHENEVER TH1S LETTER OF CRED]1 1S DRAWN ON UNDER AND 1N COMPL1ANCE s W1TH THE T ERMS OF THIS LETTER OF CREDIT, WE SHALL DULY HONOR SUCH u u z DRAFT UPON IIS PRESEilI AT lON TO US W1 THIN 30 DAYS. AND WE SHALL [ DEPCBll lHE AMOUNT OF THE DRAFT DIRECTLY INTO THE STANDBY TRUST g { FUND OF NOR1HERN STALER POWER COMPANY l N ACCORT' ANCE WITH YOUR <g INSTRUCTIONS. 2 4 Ez hh EACH DHAFT MUS1 DEAR ON ITS FACE THE CLAUSE: " DRAWN UNDER LETTER 33 DF CREDIT NO. 74470, DATED JANUARY 27, 1992, AND THE TOTAL OF THIS g{ DHAFI AND.ALL OTHER DRAFTS PREVIOUELY DRAWN UNDER THIS LET1ER OF $$ CREDIT DOES NOT E X CEED $7 50,000. 00." $,$ FIRSI BANK NATIONAL ASSOCIATION, MINNEAPOLIS OFFICE 1 + l U s'), dhk ( "; g THOMAb E. FINLEY DEBfm M. LAURENTS $e VICE PRESIDENT COORDINATOR m* 52 o tg JANUARY 27, 1992 l 0 u-E u l !h i a sc m l l l 1 ORIGINAL onoon or orc,

A) Firct Bank (v. NatiorW A%ocimon l %,w,,,%. s,mm FIRST BANK NATIONAL ASSOCIATION. P.O. BOX A1567. MINNEAPOLIS, MINNESOTA 55480 f ast bo4 Neuonal Assouation Imernatinna? funkeny 6+oup. First Bank Place. 200 South $is th Street, Minneapolis MN 5540? Pione 612-310 4881 e C a t>ic likb f B ANK. MPS e T ele n TRT 192179 F BN A INT L '/PS e S W I F T. FNBMUS44 IRREVOCABLE STANDBY LETTER OF CREDIT NO. 74470 IHIS CREDIT EXPIRES FEDRUARY 1, 1993 g IEDUED TO: U.S. NUCLEAR REGULATORY COMMISSION WADHINGTON, DC 20M5 O , $ WE IF RE UY E'iT ABL I SH OUR IRREVOCAULE STANDDY LETTER OF CREDIT tG NU. '/4470 IN YOUR FAVOR, AT THE REQUEST AND FOR THE ACCOUNT OF hh NORTvthDN STATES POWER COMPANY, ATTN CASH AND BANKING, 414 yk NICULLET M AL L., MINNEAPOLIS, MINNESOTA % 401 UP TO THE AGGREGATE g' AMOUNI OF SEVEN HUNDRED AND FIFTV 1HOUSAND DOLLARS, U.S. DOLLARS $p 1-750,000.00, AVAILAULE UPON PRESENTATION OF: 55 $g (1) YOUR SIGH 1 DR AF T, DEARINO REFERENCE TO TH]S LETTER OF CRED11 ju NO. 7 4 4 ~/ O. AND g

2

[h (2) YOUR SIGNED STATEMENT READING AS FOLLOWS 'l CERTIFY THAT THE yg AMOUNI DF 1HE DRAFT IS PAYAHLE PURSUANT TO REGULATIONS 1 SSLIE D ,,] Sg UNDER AUTHORITY OF THE U.S. NUCLEAR REGULATORY COMMISSION." m xgg pg THIS LETTER DF CRED]l IS ISSUED IN ACCORDANCE WITH REGULATIONS 4p 1SSUED UNDEH TlW AUlHORITY OF THE U.S. NUCLEAR REGULATORY $$ EDMMISSION (NRC), AN AGENCV Of THE U.S. GOVERNMENT, PURSUANT TO hh THE ATUNIC ENERGY ACT OF 1954 AS AMENDED, AND THE ENERGY y 3f REORGANIZATIDN ACT OF 1974. THE NRC HAS PROMULGATED REGULATIONS lE j JN lITLE 10, CHAPTER 1 OF THE CODE OF FEDERAL REOLILATIONS, PART 7.* $* 30,_WHICH REQUIRE THAT A ilOLDER OF, OR AN APPLICANT FOR, A LICENSE i $5 ISSUED UNDER 10 CFR PART 30 PROVIDE ASSURANCE THAT FUNDS WILL BE O $$ AVAILABLE WHEN NEEDED FOR DECOMMISSIONING. 50 $$ lH15 LETTER OF CREDIT IS EFFECllVE AS OF JANUARY 27, 1992 AND gg SHALL EXPIRE ON FEBRUARY 1, 1993, BUT SUCH EXPIRATION DATE SHALL j$ DE AUTOMATICALLY EXTENDE D FOR A PERIOD OF ONE YE AR ON FEBRUARY 1, gg 1993 AND UN EACH SUCCESSIVE EXPIRAT1ON DATE, UNLESS, AT LEAST 90 mg DAYS BEFORE THE CURRENT EXPIRATION DATE, WE NOTIFY BOTH YOU AND gg NORTHERN STATES POWER COMPANY, BY CERTIFIED MAIL, AS SHOWN ON THE y; S16NED RETURN RECEIPTS. IF NORTHERN STATES POWER COMPANY 15 ui UNAUL.E TO SECURE ALTERNATIVE FINANCIAL. ASSURANCE TO REPLACE THIS E LETTER OF CREDIT WI1HIN 30 DAYS OF NOTIFICATION OF CANCELLATION "h THE NRC MAY DRAW UPON THE FUL.L VALUR OF THIS LE1TER OF CREDli E PRIOR 'TO CANCELLATICN THE DANK SHALL GIVE IMMEDIATE NOTICE TO E m: CONTINUED ON PAGE INu - / 11 ~ / on ocn n2 87a ORIGINAL - _ _ _ _ - _ _ - _ _ _ _ - -}}