ML20116D013
| ML20116D013 | |
| Person / Time | |
|---|---|
| Site: | Fermi  |
| Issue date: | 04/10/1985 |
| From: | Jens W DETROIT EDISON CO. |
| To: | Youngblood B Office of Nuclear Reactor Regulation |
| References | |
| NE-85-0472, NE-85-472, NUDOCS 8504290252 | |
| Download: ML20116D013 (4) | |
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Director of Nuclear Reactor Regulation Attention; Mr. B. J. Youngblood, Chief Licensing Branch No. 1 Division of Licensing U. S. Nuclear Regulatory Commission Washington, D.C.
20555
Dear Mr. Youngblood:
Reference:
(1)
Fermi 2 NRC License No. NPF-33 (2)
NRC to Detroit Edison Letter, " Issuance of Facility Operating License NPF-33, Fermi 2",
March 20, 1985
Subject:
Indemnity Agreement No. B-20 Secondary Financial Protection As requested per Reference (2), please find enclosed an executed copy of Amendment No. 26 to the subject agreement.
We are also enclosing a copy of our cash flow statement for l
Secondary Financial Protection under the Price-Anderson Act, which was originally submitted to Mr. Saltzman, Assistant i
l Director of State and Licensee Relations on December 4, 1984.
We propose that December 4, 1984 be considered the anniversary date for the submittal of all future statements.
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We will plan on submitting such statements annually on December 4, unless you or Mr. Saltzman indicate otherwise.
As you know, Wolverine Power Supply Cooperative, Inc., has an I
ownership interest in Fermi 2.
Therefore, we are enclosing a copy of the April 29 and May 28, 1976, memorandums which constitutes Wolverine's response to the Secondary Financial Protection requirements as detailed under 10CFR140.21.
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Mr. B. J. Youngblood April 10, 1985 NE-85-0472 Page 2 Should you have any questions or comments on the enclosed material, please contact Mr. Keener Earle at (313) 586-4211.
Sincerely, N
Attachment cc:
Mr. P. M. Byron Mr. M. D. Lynch Mr. J. D. Saltzman l
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UNITED STATES
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g NUCLEAR REGULATORY COMMISSION "j
WASHINGTON, D. C. 20555 Docket Nos. 50-16 50-341 AMENDMENT TO INDEMNITY AGREEMENT NO. B-20 AMENDMENT NO. 26
' Effective March 20, 1985 Indemnity Agreement No. B-20, between The Detroit Edison Company, Wolverine Power Supply Cooperative, Inc. and the Atomic Energy Comission, dated March 26, 1962, as amended, is hereby further amended as follows:
Item 2a. of the Attachment to the indemnity agreement is deleted in its entirety and the following substituted therefor:
Item 2 - Amount of financial protection a.
$ 1,000,000 (From 12:01 a.m., January 25, 1961, to 12:00 midnight, July 10, 1963 inclusive)
$ 1,500,000 (From12:01a.m., July 11, 1963, to 12:00 midnight, December 16, 1965 inclusive)
$ 3,500,000 (From12:01a.m., December 17, 1965, to 12:00 midnight, March 21, 1966 inclusive)
$12,100,000 (From12:01, March 22,1966,to 12:00 midnight, July 5,1966 inclusive)
$18,000,000 (From 12:01 a.m., July 6, 1966, to 12:00 midnight, August 6, 1967 inclusive)
$22,200,000 (From 12:01 a.m., August 7,1%7, to 12:00 midnight, October 8, 1970 inclusive)
$29,600,000 (From12:01a.m., October 9,1970,to 12:00 midnight, October 15, 1970 inclusive)
$44,400,000 (From12:01a.m., October 16, 1970, to 12:00 midnight, December 31, 1972 inclusive)
$1,000,000 (From 12:01 a.m., January 1,1973, to 12:00 midnight, March 19, 1935
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. $160,000,000* (From 12:01 a.m., March 20,1985)
Item 3 of the Attachment to the indemnity agreement is deleted in its entirety and the following substituted therefor:
I Item 3 - License number or numbers SNM-426 (From 12:01 a.m., January 25, 1961, to 12:00 midnight, July 10, 1963 inclusive)
DPR-9 (From12:01a.m., July 11,1963)
SNM-1915 (From 12:01 a.m., May 31, 1983, to 12:00 midnight inclusive)
NPF-33 (From 12:01 a.m., March 20, 1985
)
Item 5 of the Attachment to the indemnity agreement is amended by adding the following:
Nuclear Energy Liability Policy (Facility Form) No. MF-120, issued by Mutual Atomic Energy Liability Underwriters.
FOR THE UNITED STATES NUCLEAR REGULATORY C0ttilSSION
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Jerome~Saltzma O ssist Director State and Licensee Re tions Office of State Pro ams g,
Accepted March 25
, 1985 Accepted
/4Lcd 27 1985 By
.M.
By d [het.
THE DETROIT EDIS0N COMPANY WOLKRI POWER SUPPLY C00PERA VE and, as of August 1,1977, the amount available as secondary financial protection.
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. i,84 EF2-72026 Mr. Jerome Saltzman, Assistant Director State and J.icensee itelations l Office of State Programs U. S. Nuclegr Regulatory Commission Washington, D.C.
20555
Dear Mr. Saltzman:
Reference:
Fermi 2
^
NRC Docket No. 50-341 l
Subject:
Price-Anderson Act Guarantee of Retrosoective Premiums Enclosed for your review is a copy of Detroit Edison's cash flow statement to meet the requirements of 10 CFR 140.21.- The statement was prepared in accordance with Regulatory Guide 9.4 and outlines the Company's financial obligation, as detailed under the Secondary Finqncial Protection of the Price-Anderson A0f' We will await the results of your review and should you have any questions, please opptact Mr. Keener Earle at (313) 586-4211.
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Sincerely,
' cc:
Mr. P. M. Byron Mr. M. D. Lynch l
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CERTIFICATE I, Ronald W. Creseps, Controller and Chief Accounting Officer of The Detroit Edison Company (" Company"), do hereby certify that the 1983 Actual financial data shown on the Company's 1984 Internal Cash Flow Projection is derived from the Company's consolidated financial statements for the year ended December 31, 1983 and that the 1984 Projection is the latest projection of the Company for,the l
year ended December 31, 1984. The financial data ir that of the Company only and does not include that of Wolverine Power Supply l
Cooperative, Inc. (" Cooperative"), a joint owner of Fermi-2.
Undertheownershipagreement,forFermi-2,thepercentageowner-ship interests of the Company and the Cooperative in Fermi-2 will change over time with the Company's interest increasing and the Cooperative's interest decreasing. The current ownership interests for the Company and the Cooperative are 80% and 20%, respectively.
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Dated:
November 28, 1984 W
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Ronald W. Cresens, Cbhtroller The Detroit Edison Company
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A
ea THE DETROIT EDISON COMPANY 1984 Internal Cash Flow Projection For Fermi-2 Nuclear Power Station (Thousands of Dollars) 1983 1984 Actual Projection Net Income After Taxes
$ 364,622
$ 397.864 Retaine((Earnings Less:
vidends (306,073)
(332,328)'
]l 58.549
$ 65,536 Adjustments:
Depreciation
$ 171,940
$ 190,640 Amortisation of Property Losses 10.449 12.231 Deferred Income Taxes and Investment Tax credits 135,603 130,971 Allowance for Funds Used During Construction (287,152)
(293,819)
Total Adjustments 4 30,840
$ 40,023 Izternal Cash Flow
$ 89,389
$ 105,559 Average Quarterly Cash Flow
$ 22,347 5 26,390
- 6.
- Fcreantage Ownership in All Operating
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Nuclear Units
'O (a)
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M rimus Total
- Contingent Liability 0
(a)
(c) Fermi-2 is petroit Edisop's only puclear unit and as of November 28,{984isnotoperating. The estimated earliest commercial operation date for Ferpi-2 is June }945.
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UNITED STATES DEPARTMENT OF AGRICULTURE RURAL ELECTRIFICATION AoMINISTRATION WASHINGTON. D.C. 30350
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April 29,.1976 s
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SUBJECT:
Nuclear Regulatory Commission
' Call re l' rice-Anderson Act i
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David A. Hamil Administrator L
On this date Mr. Dinitz of NRC caDed me about the Price-Anderson Act. He said they had published a proposed rule on March 18 which sqight not have pome to our attention. He said that in case of a major, acciclent, there could be an assessment against a nuclear plant in the range of {4 to $5 mill (on, and he wondered how this rr.!gh:
., affect our borrowers, He was aware that our borrowers at presem "have no more than a minority interest in any major plants.
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.,In discussion I mentioned that in case of necessity REA has authority to make an operating loan to a borrower, and that an amount of
$5 million was not large in comparison to our annual loan program.
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He said that this liackup would satisfy them with respect to the ability of an REA financed system to meet their assessment. He said he i
would send us a copy of their proposed rule for our comments, and it would be helpful for us to mention our authority to make an l
operating loan.
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. rr* DAVID H. ASKEG RD
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Deputy Administrator b
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May,28,1976 ivir.! Ira Dinitz, ladec2nity Specialist Antitrust and Indemnity Group
[ (([D]'M F"5 Nuclear Reactor Regulation W di IU) J.,
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Nuclear Reguistory Commission 0CT1.1982 :9 Washl:fgton, D. C. 20535 i
F ouav Mr. binitz:
dORitut. A1lCHICla,
%ECTQl0 trmerarly-I wish to thank you for your telephone can of April 39,1975, and tJn ensuing letter pointing out the phanges o thp' Price Act of1957, which were snapt94 ){l'ugUc}kaw % ((T,Andersca
.wu were aware of these changes and the fast thet owners of nuclear in the unlikel.t occurrqnce of a. nuclear incident. Th of the Rural Electrification Administr9 tion is aqthorised, purquant to the RE Act, to make loans euurse, all of.our bprrowers,(or auch petrospective premiums. Of to d'at0* would be Mable only for percentages of these retrospective premiums since the borrower,s, u.sually own less than a fuu portion of the reactor. The prs =Jums or the annual operating cost of a large nuclear reactor
.tu your letter.you further asked our opinion as to s
i,5 the retrospective premium would be relatively small when cosepare tu the total utiUty responsibilities of conducting business d
foresee how any utility large enough to be involved in nuclear
. I cannot tieneration would forfeit payment of its retrospective premiums Sinceruly,
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David N. As:cesaard
- DAVID H. ASKEGAARD Deputy Administrator cc:
Official File-PPB
' /ADpt Reading-PSMESD Holt Reading-PPB OGC PSMESD: PPB:JWHolt:m1w:5/26/76 Me typerl/HConner A.,
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