ML20133K829

Informs That Based on Info Recently Provided by Licensee, Estimated Decommissioning Cost Increased from Previous Year Estimate,Due to Early Decommissioning of Facility & Industry Lessons Learned from Decommissioning Other NPPs

ML20133K829
Person / Time
Site:	Millstone, Haddam Neck  File:Connecticut Yankee Atomic Power Co icon.png
Issue date:	01/14/1997
From:	Stephen Dembek NRC (Affiliation Not Assigned)
To:	Staub B AFFILIATION NOT ASSIGNED
References
NUDOCS 9701210360
Download: ML20133K829 (2)

Text

,_ _ _.. _ _ _ _ _. _ _ _ _ _ _. - _. _ _ _ _ _ _ _. _... _ _ _ _ _. - - _ _

j Ms. Billie Staub i '

81 Pattagansett Road.

January 14, 1997 j

Niantic, CT 06357(

Dear Ms. Staub:

In my. April-18,1996,. letter to you, I provided the estimated decomissioning costs and-the corresponding trust funds for decomissioning the Millstone and j

Haddam Neck nuclear power plants.. After. the Connecticut Yankee Atomic Power i

Company (CYAPCO) announced the early decomissioning of the Haddam Neck Plant (HNP).-I noticed:the^ decommissioning cost recently announced by CYAPC0 was i

significantly higher than the cost'I forwarded to you.

I followed up on this i

issue and found the information provided to you was low because it only considered Northeast Utilities'-(NU) costs.

Since NU only owns approximately 50 percent?of HNP, the decommissioning cost I previously forwarded to you i

(i.e., $188.9 million) should'have been doubled to represent the total l

decommissioning cost < associated with the plant.

Based on ibformation recently provided to me by the licensee, the estimated i

decomissioning cost for HNP is approximately $427 million (1996 dollars considering immediate dismantlement) and the trust fund contains approximately

$200 million (market value).

The estimated decommissioning cost was increased from the previous year's estimate due to-the early decomissioning of the facility and industry lessons learned from decomissioning other nuclear power plants.

Since Northeast Utilities does not own 100 percent of Millstone Unit ~3, the decomissioning cost I provided to you for this unit was also too low. The current estimated decomissioning cost for this unit is $427 million (1995 dollars considering imediate dismantlement) and the trust fund contains i

approximately $119 million (market value).

Please feel free to call me at (301) 415-1455 or write to me at the above address if you have any questions on this issue.

Sincerely,

~

Step en Dembek, Project Manager Special Projects Office - Licensing Office of Nuclear Reactor Regulation DISTRIBUTION:

' Docket. File 50-213 and.50-423" JDurr, RI PUBLIC JRogge, RI i

DFj d

SPO-L Plant WTravers PMcKee hhh &f e

k JAndersen q410056' MFairtile OGC DOCUMENT NAME: G:

n

,.em. m \\.DEMBEK\\, STAUB.LTR.. n n m. n.c c. c,,

out.n.cn,e#.

r copy.ien dhm.ni>.ncio.u..

n. Noc.,y 0FFICE SP0-L:PM,<

SPO-L: LAMB SP04LN I

SP08 i

NAME SDembek / /b 4 LBerry M);

PMciteh WTrfavers 01/(k/97 ' ~ '

01/')D/97 01/d/97 01/ /97 DATE 01/9/97.

9701210360 970114 "FICIAL, RECORD COPY PDR ADOCK 05000213 W

PDR

te4 l

9\\

UNITED STATES O+

j j

NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 2005M201

\\, *****/

i January 14, 1997 l

l Ms. Billie Staub t

81 Pattagansett Road l

Niantic, CT 06357

Dear Ms. Staub:

l In my April 18, 1996, letter to you, I provided the estimated decomissicring costs and the corresponding trust funds for decommissioning the Millstone and Haddam Neck nuclear power plants. After the Connecticut Yankee Atomic Power Company (CYAPC0) announced the early decomissioning of the Haddam Neck Plant (HNP), I noticed the decommissioning cost recently announced by CYAPC0 was significantly higher than the cost I forwarded to you.

I followed up on this issue and found the information provided to you was low because it only considered Northeast Utilities' (NU) costs.

Since NU only owns approximately 50 percent of HNP, the decommissioning cost I previously forwarded to you (i.e., $188.9 million) should have been doubled to represent the total l

decommissioning cost associated with the plant.

Based on information recently provided to me by the licensee, the estimated decommissioning cost for HNP is approximately $427 million (1996 dollars considering immediate dismantlement) and the trust fund contains approximately

$200 million (market value). The estimated decommissioning cost was increased from the previous year's estimate due to the early decommissioning of the facility and industry lessons learned from decommissioning other nuclear power plants.

Sirce Northeast Utilities does not own 100 percent of Millstone Unit 3, the decomissioning cost I provided to you for this unit was also too low. The current estimated decommissioning cost for this unit is $427 million (1995 dollars considering immediate dismantlement) and the trust fund contains

}

approximately $119 million (market value).

4 Please feel free to call me at (301) 415-1455 or write to me at the above address if you have any questions on this issue.

Sincerely, l

Stephen Dembek, Project Manager Special Projects Office - Licensing Office of Nuclear Reactor Regulation

'