ML20108F536

Yankee Nuclear Power Station Independent Spent Fuel Storage Installation - Decommissioning Funding Assurance Status Report

ML20108F536
Person / Time
Site:	Yankee Rowe
Issue date:	03/12/2020
From:	Pizzella C Yankee Atomic Electric Co
To:	Document Control Desk, Office of Nuclear Material Safety and Safeguards
References
BYR 2020-004
Download: ML20108F536 (10)

Text

YANKEE ATOMIC ELECTRIC COMPANY 49 Yankee Road, Rowe, Massachusetts 01367 March 12, 2020 BYR 2020-004 10 CFR50.4 10 CPR 50.75(f)(l) and (2) 10 CPR 50.82(a)(8)(v) and (vi)

A TfN: Document Control Desk U.S. Nuclear Regulatory Commission Washington, DC 2055~ - 0001 Yankee Atomic Electric Company Yankee Nuclear Power Station Independent Spent Fuel Storage Installation NRC License No. DPR-3 (NRC Docket Nos.50-029) 1 z_ - 0 3> }

Subject:

Decommissioning Funding Assurance Status Report On February 26, 1992, Yankee Atomic Electric Company (YABC) informed the USNRC that the Board of Directors ofYAEC had decided to permanently cease operations at the Yankee Nuclear Power Station and that fuel had been permanently removed from the reactor (Reference 1). In accordance with 10 CPR 50.82(a)(2), the certifications in the letter modified the Y AEC license to permanently withdraw Y ABC's authority to operate the reactor. In 1993, Y AEC commenced

• , decommissioning the powerplant. On August 10, 2007, the NRC released most of the formerly

'I licensed land for unrestricted use, shrinking the licensed land to the Independent Spent Fuel Storage Installation (ISFSI) only (Reference 2). The only decommissioning activities that remain are those associated with the decommissioning of the Yankee Nuclear Power Station ISFSI, which is currently scheduled to occur after the Department of Energy (J:?OE) removes the irradiated fuel and Greater than Class C (GTCC) waste.

In Attachment 1, YAEC provides the attached Decommissioning Funding Assurance Status Report for the Yankee Nuclear Power Station ISFSI to comply with 10 CPR 50.75(f)(l) and (2) and 10 CPR 50.82(a)(8)(v) and (vi).

This letter contains no regulatory commitments.

Yankee Atomic Electric Company BYR 2020-004\March 12, 2020\Page 2 If you have any questions regarding this letter, please do not hesitate to contact me at (860) 267-6426 x304.

Respectfully,

~~~

Vice President, Chief Financial Officer, and Treasurer

Attachment:

1. Decommissioning Funding Status Rep9rt for the Yankee Nuclear Power Station Independent Spent Fuel Storage Installation (Status as of 12/31/2019)

References:

1. A. C. Kadak (YAEC) letter to USNRC, "Permanent Cessation of Power Operations at the Yankee Nuclear Power Station," BYR-92-024, dated February 26, 1992

2. USNRC letter to Yankee Atomic Power Company, "Yankee Nuclear Power Station - Release of Land from Part 50 License," dated August 10, 2007 cc: D. Lew, NRC Region I Administrator A. Dimitriadis, Chief, Decommissioning Branch, NRC, Region 1 D. Doyle, Acting Chief, Division of Fuel Management, Storage and Transportation Licensing Branch K. Cederberg, Planning, Preparedness & Nuclear Section Chief, MEMA

ATTACHMENT 1 TO BYR 2020-004 DECOMMISSIONING FUNDING STATUS REPORT FOR THE YANKEE NUCLEAR POWER STATION INDEPENDENT SPENT FUEL STORAGE INSTALLATION (STATUS AS OF 12/31/2019)

Attachment 1 to BYR 2020-004 Decommissioning Funding Status Report for the r Yankee Nuclear Power Station Independent Spent Fuel Storage Installation (Status as of12/31/2019) 10 CFR Requirement Response Comment 10 CFR 50.75(f)(l) and (2) Requirements

1. The amount of decommissioning -$8.21 million 10 CFR 50.75(c) provides the calculation basis for determining minimum amounts of funds estimated to be required (in 2019 funding required to demonstrate reasonable assurance of funds for decommissioning.

pursuant to 10 CFR 50.75 (b) and dollars) However, the methodology does not take into consideration work that has already been (c) completed. In 1993, Y AEC commenced decommissioning the power plant. On August 10, 2007, the NRC released most of the formerly licensed land for unrestricted use, shrinking the licensed land to the Independent Fuel Storage Installation (ISFSI). Thus, the only decommissioning activities and decommissioning funding requirements that remain are those associated with the decommissioning of the Yankee Nuclear Power Station ISFSI, which is currently scheduled to occur after the Department of Energy (DOE) removes the irradiated fuel and Greater than Class C (GTCC) waste.

On December 10, 2018, Yankee Atomic Electric Company (YAEC) provided a three-year update to the decommissioning funding plan for the Yankee Nuclear Power Station ISFSI in accordance with 10 CFR 72.30(c) that included a revised Decommissioning Cost Estimate (DCE) for the Yankee Nuclear Power Station ISFSI.

2. The amount accumulated at the -$17.67 Y AEC has established an account within its Nuclear Decommissioning Trust (NDT) end of the calendar year preceding million (as of entitled "ISFSI Radiological Decom" that segregates the funds for radiological the date of the report for items 12/31/2019) decommissioning of the ISFSI from the larger balance of funds for ongoing included in 10 CFR 50.75 management of irradiated fuel and GTCC waste held in the NDT. This market balance (e)(l)(i) only reflects the funds in the segregated account for radiological decommissioning of the ISFSI.

3. Schedule of the annual amounts $0 No additional comments.

remaining to be collected Including amounts beyond those required in 10 CFR 50.75(e)(l)(i)

1. Years to collect NIA Page 1 of 7

Attachment 1 to BYR 2020-004 Decommissioning Funding Status Report for the Yankee Nuclear Power Station Independent Spent Fuel Storage Installation (Status as of 12/31/2019) 10 CFR Requirement Response Comment

4. The assumptions used regarding No additional comments.

escalation of the decommissioning cost estimate, rates of earnings on decommissioning funds, and rates of other factors used in funding projections are:

Annual escalation rate 2.5%

Annual after-tax earnings rate on decommissioning trust funds 4.0%

Other factors assumed None

5. Any contracts upon which the Yes YABC may collect funds through its power contracts and amendatory agreements under licensee is relying pursuant to FERC regulation. The power contracts and the amendatory agreements specify the 10 CFR 50.75(e)(l)(ii)(A) obligations of the purchasers for the costs of YABC, including decommissioning costs.

Such contracts have been filed with FERC.

6. Any modifications to a licensee's None No additional comments.

current method of providing financial assurance occurring since the last submitted report.

7. Any material changes to trust None No additional comments.

agreements.

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Attachment 1 to BYR 2020-004 Decommissioning Funding Status Report for the r

Yankee Nuclear Power Station Independent Spent Fuel Storage Installation (Status as of 12/31/2019) 10 CFR Requirement Response Comment 10 CFR 50.82(a)(S)(v) (A) through (D) Requirements

1. The amount spent on In 1993, YABC commenced decommissioning the power plant. On August 10, 2007, decommissioning, both: the NRC released most of the formerly licensed land for unrestricted use, shrinking the licensed land to the ISFSI. The only decommissioning activities that remain are those Cumulative associated with the decommissioning of the Yankee Nuclear Power Station ISFSI,

$0 (Refer to

.which is currently scheduled to occur after the DOE removes the irradiated fuel and and Comment)

GTCCwaste.

Over the previous calendar year $0 10 CFR 50.82(a)(8)(v) became effective on December 17, 2012. At that time, the only areas that were within the control of the Operating License No. DPR-3 were those associated with the Yankee Nuclear Power Station ISFSI. Thus, YABC is only presenting the information associated with the decommissioning of the areas that remain within the control of Operating License No. DPR-3.

Presently, YABC is storing irradiated fuel and GTCC waste on site until it is removed by the DOE. Decommissioning of the Yankee Nuclear Power Station ISFSI is currently scheduled to be completed in calendar year 2038, after the DOE removes the irradiated fuel and GTCC waste. Thus, the cumulative cost spent on decommissioning the Yankee Nuclear Power Station ISFSI is $0, and the amount spent in calendar year 2019 is $0.

2. The remaining balance of any -$17.67 YABC has established an account within its NDT entitled "ISFSI Radiological Decom" decommissioning funds. million (as of that segregates the funds for radiological decommissioning of the ISFSI from the larger 12/31/2019) balance of funds for ongoing management of irradiated fuel and GTCC waste held in the NDT. This market balance only reflects the funds in the segregated account for radiological decommissioning of the ISFSI.

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Attachment 1 to BYR 2020-004 Decommissioning Funding Status Report for the Yankee Nuclear Power Station Independent Spent Fuel Storage Installation (Status as of 12/31/2019)

The amount provided by other $0 As of December 31, 2019, YAEC's NDT account entitled "ISFSI Radiological Decom" financial assurance methods being has a balance more than sufficient to cover the estimated cost of the remaining relied upon radiological decommissioning of the ISFSI. However, if in the future, the balance in the account is not fully funded to cover the estimated cost of the remaining radiological decommissioning of the ISFSI, the Company has several methods of obtaining additicmal funds, if required, to cover projected costs.

First, YAEC may collect funds through its power contracts and amendatory agreements under FERC regulation. The power contracts and the amendatory agreements specify the obligations of the purchasers for the costs ofYAEC, including decommissioning.

Pursuant to these power contracts, Y AEC has the ongoing ability to seek collections from its purchasers for additional funds that may be required to cover these costs.

Second, Y AEC has received proceeds from the successful litigation of the first four phases of its breach of contract damages claims against the DOE for failure to begin the removal of spent nuclear fuel (SNF) and GTCC waste from the site in 1998. YAEC will continue to file claims against the DOE as long as the DOE continues to breach its contract obligations related to SNF and GTCC waste.

A YAEC FERC filing approved in June 2013, implemented a fifteen-year funding mechanism. Until the 2013 FERC filing, the Company had employed a "full funding" assumption in developing funding requirements. The fifteen-year funding mechanism was put in place to incorporate the potential for the receipt of future DOE breach of contract damages as a source of funding as discussed below. If future damage recovery does not occur, the Company has the ability to apply to FERC for more funding, if necessary. The approved FERC filing also requires Y AEC to provide an informational filing regarding the adequacy of funding if five years pass without receipt of damage awards from litigation with the DOE.

Third, Y AEC expects to utilize the investment return on Decommissioning Trust assets as a funding source. The current assumed rate of investment return, after fees and taxes, is 4.0%.

Page 4 of7

Attachment 1 to BYR 2020-004 (

Decommissioning Funding Status Report for the Yankee Nuclear Power Station Independent Spent Fuel Storage Installation (Status as of 12/31/2019) 10 CFR Requirement Response Comment

4. An estimate of the costs to -$8.21 million On December 10, 2018, YABC provided a three-year update to the decommissioning complete decommissioning, (in 2019 funding plan in accordance with 10 CPR 72.30(c) that included a revised DCE for the reflecting any difference between dollars) Yankee Nuclear Power Station ISFSI.

actual and estimated costs for work performed during the year.

5. The decommissioning criteria 10CFR The assumptions regarding the decommissioning cost estimate are provided in the DCE upon which the estimate is based 20.1402 for the Yankee Nuclear Power Station ISFSI provided on December 10, 2018.

6. Any modifications occurring to a None No additional comment.

licensee's current method of providing financial assurance since the last submitted report.

7. Any material changes to trust None No additional comment agreements or financial assurance contracts.

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Attachment 1 to BYR 2020-004 r

Decommissioning Funding Status Report for the Yankee Nuclear Power Station Independent Spent Fuel Storage Installation (Status as of 12/31/2019) 10 CFR 50.82(a)(8)(vi) Requirement

1. Additional financial assurance None As of December 31, 2019, YABC's NDT account entitled "ISFSI Radiological Decom" required to cover the estimate cost has a balance more than sufficient to cover the estimated cost of the remaining of completion. radiological decommissioning of the ISFSI. However, if in the future, the balance in the account is not fully funded to cover the estimated cost of the remaining radiological decommissioning of the ISFSI, the Company has several methods of obtaining additional funds, if required, to cover projected costs.

First, YABC may collect funds through its power contracts and amendatory agreements under FERC regulation. The power contracts and the amendatory agreements specify the obligations of the purchasers for the costs ofYABC, including decommissioning.

Pursuant to these power contracts, YAEC has the ongoing ability to seek collections from its purchasers for additional funds that may be required to cover these costs.

Second, YAEC has received proceeds from the successful litigation of the first four phases of its breach of contract damages claims against the DOE for failure to begin the removal of spent nuclear fuel (SNF) and GTCC waste from the site in 1998. YAEC will continue to file claims against the DOE as long as the DOE continues to breach its contract obligations related to SNF and GTCC waste.

A YAEC FERC filing approved in June 2013, implemented a fifteen-year funding mechanism. Until the 2013 FERC filing, the Company had employed a "full funding" assumption in developing funding requirements. The fifteen-year funding mechanism was put in place to incorporate the potential for the receipt of future DOE breach of contract damages as a source of funding as discussed below. If future damage recovery does not occur, the Company has the ability to apply to FERC for more funding, if necessary. The approved FERC filing also requires YAEC to provide an informational filing regarding the adequacy of funding if five years pass without receipt of damage awards from litigation with the DOE.

Page 6 of7

_L_

Attachment 1 to BYR 2020-004 Decommissioning Funding Status Report for the t

Yankee Nuclear Power Station Independent Spent Fuel Storage Installation (Status as of 12/31/2019)

Third, YABC expects to utilize the investment return on Decommissioning Trust assets as a funding source. The current assumed rate of investment return, after fees and taxes,

.is 4.0%.

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