ML20113C188

Comments on Proposed Rule 10CFR50 Re Financial Assurance Requirements for Decommissioning Nuclear Power Reactors

ML20113C188
Person / Time
Site:	Summer
Issue date:	06/24/1996
From:	Lippard G SOUTH CAROLINA ELECTRIC & GAS CO.
To:	Hoyle J NRC OFFICE OF THE SECRETARY (SECY)
References
FRN-61FR15427, FRN-62FR47588, RULE-PR-50 61FR15427-00016, 61FR15427-16, AF41-1-067, AF41-1-67, AF41-1-68, NUDOCS 9607010026
Download: ML20113C188 (2)

Text

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'96 JUN 24 P4 :49 Asemwicem June 24,1996 RC-96-0157 0FFICE C3 JECTUW i

00CKEii.a L LLWLC BRMiLH Secretary of the Commission Attention: Docketing and Services Branch U.S. Nuclear Re ulatoryCommission DOCMET M g g Washington,D 20555 PROPOSED W _ )

gg6d.9 Gentlemen:

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Subject:

VIRGIL C. SUMMER NUCLEAR STATION DOCKET No.50/395 OPERATING LICENSE No.NPF-12 COMMENTS ON DECOMMISSIONING FUNDING ANPR South Carolina Electric & Gas Company (SCE&G) submits the following comment pursuant to the NRC's request.

NRC PROPOSAL require that electric utility reactor licensees who are no longer subject to rate regulation and do not have a guaranteed source of income must provide "u )

front" assurances of availability of decommissioning funds (e.g., throug1 prepayment, surety bonds, or letters of credit), rather than through, or as a supplement to, accumulation of funds in an external trust over the course of the operating life of the facility; COMMENT The exercise of the NRC's statutory authority regarding the licensing of power reactors has long been premised on a single, fundamental standard -- that there is reasonab e assurance that the activity for which a license is sought can be conducted in a manner that will protect the public health and safety.

Whether in the context of demonstrating compliance with specific safety requirements, or with respect to assuring that applicants and licensees can provide for the payment of decommissioning expenses when needed, the NRC applies the reasonable assurance standard as the fundamental test for the issuance of a license and the continued authorization for the licensed activity.

As the NRC examines potential questions related to decommissioning funding for power reactors in the context of utility deregulation and restructuring, there arguably will be two fundamentally differing perspectives that may be applied. The first perspective would reflect the continued application of a reasonable assurance standard for the availability of decommissioning funding, perhaps implemented on a case-by-case analysis of licensees situations in a dere ulated environment.

On the other hand, some may advocate a very hi standard (almost a cuarantee) for the approval of decommissioning f nding arrangements related to power reactors in a deregulated and restructured environment. Such a standard would be 9607010o26 960624 61 115427 PDR o ' O, J

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June 24,1996 Page 2 of 2 implemented through a preemptive determination of a licensee's presumed financial circumstances once the sale of electricity from the licensed facility was no longer governed by cost-based rates, irrespective of the individual licensee's circumstances. Such a presumption would, effectively, treat each such power reactor licensee as operatincl in an economic environment with much the same level of uncertainty as hasbeen applied to the mcst economically fragile of business concerns holding NRC licenses'.

i in the view of SCE&G, the NRC should allow for case-by-case approval of decommissioning funding arrangements for those licensees who can establish that.ney have provided an adequately high degree of assurance through whatever method may be developed, including methods involving the i

approval of the state Public Utility Commissions and the Federal Emergency l

Resp'onse Center, to provide the requisite reasonable assurance called for by NRC s historic safety standards. In particular, a utility should be afforded the opportunity to demonstrate that ample margins exist following restructuring to cover decommissioning funding contributions during the operating life or i

the facility, including extended outages, and to cover decommissioning costr,in the event of premature shutdown.

This approach should not preclude alternative approaches approved by the NRC in advance, thus leading to enhanced predictability.

Should you have any questions, 345-4124 at your convenience please contact Mr. Jeffrey Pease of my staff at (803) t l

1 Very truly yours, eorge A. ippard ll1 JWP/nkk c:

J. L Skolds W. F. Conway R. R. Mahan R. J. White t

S. D. Ebneter A. R. Johnson NRC Residentinspector S. F. Fipps K. R. Jackson J. B. Knotts Jr.

RTS (PR 960013 )

File (810.34-1)

DMS (RC-96-0157) i m..

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