ML20135F668
| ML20135F668 | |
| Person / Time | |
|---|---|
| Site: | Monticello, Prairie Island  |
| Issue date: | 02/26/1997 |
| From: | Richard Anderson NORTHERN STATES POWER CO. |
| To: | NRC OFFICE OF INFORMATION RESOURCES MANAGEMENT (IRM) |
| References | |
| NUDOCS 9703130253 | |
| Download: ML20135F668 (25) | |
Text
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t Northe n states Power Company 1717 Wakonade Dr. E.
Welch, MN 55089 Telephone F
February 26,199E' 10 CFR Part 50.9 Regulatory Guide 1.159 Section 2.1.6 f
i U S Nuclear Regulatory Commission Attn: Document Control Desk Washington, DC 20555 MONTICELLO NUCLEAR GENERATING PLANT Docket No. 50-263 License No. DPR-22 PRAIRIE ISLAND NUCLEAR GENERATING PLANT Docket Nos. 50-282 License Nos. DPR-42 50-306 DPR-60 Letter Reporting an Amendment and Restatement of the Nuclear Decommissioning Trust Agreement for Northern States Power Company In accordance with 10 CFR 50.9 and Regulatory Guide 1.159, Sec 2.1.6, Northern States Power Company is submitting the attached ' Amended and Restated Nuclear Decommissioning Trust Agreement', dated November 26,1996, to ensure that NRC records are current.
Please contact Roger O. Anderson (612) 337-2050 if you require additional information related to this submittal.
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@DO Roger O. Anderson Director of Licensing and Management issues 9703130253 970226 0"^
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l USNRC February 26,1997 Page 2 of 2 c:
Regional Administrator-Ill, NRC NRR Project Manager, NRC Attn: Robert S. Wood, NRC Senior Resident inspector, NRC State of Minnesota l
Attn: Kris Sanda J E Silberg 1
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1 AMENDED AND RESTATED NUCLEAR DECOMMISSIONING TRUST AGREEMENT (Qualified Fund)
THIS AMENDED AND RESTATED NUCLEAR DECOMMISSIONING TRUST AGREEMENT (" Agreement"), dated as of the26thday of November,1996 between Northern States Power Company, a corporation duly organized and existing under the laws of the State of Minnesota, having its principal office at 414 Nicollet Mall, Minneapolis, Minnesota 55401 (the " Company"), and MELLON BANK, N.A., as Trustee, a national banking association having its principal office at One Mellon Bank Center, Pittsburgh, Pennsylvania,15258 (the " Trustee");
WITNESSETH:
WHEREAS, the Company owns a 100 percent undivided interest in three nuclear generating units (the " Units"): the Monticello Nuclear Generating Station, located in Wright County near Monticello, Minnesota; and the Prairie Island Nuclear Generating Station Unit I and the Prairie Island Nuclear Generating Station Unit 2, both of which are located in Goodhue County near Red Wing, Minnesota; 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 50. These regulations, applicable to the Company, require that a holder of, or an applicant for a license issued pursuant to 10 CFR Part 50 provide assurance that funds will be available when needed for required decommissioning activities.
WHEREAS, pursuant to its agreement with the Trustee dated July 20,1990 (the " Trust Agreement"), the Company established funds (the " Qualified Funds")
intended to qualify as Nuclear Decommissioning Reserve Funds under section 468 A of the Internal Revenue Code of 1986, as amended (the " Code"), or any corresponding section or sections of any future United States internal revenue statute and the regulations
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4 thereunder, under the laws of the Commonwealth of Pennsylvania to provide part of such financial assurance for the Units; WHEREAS, legislative and regulatory changes since the adoption of the Trust Agreement require its amendment to read as set forth in this amended and restated l
trust agreement (the " Agreement");
WHEREAS, the assets of the Qualified Funds maintained under this-Agreement will consist of monies collected by the Company pursuant to directive of the -
"PUC" (as hereafter defined) from its rate customers attributable to " Decommissioning Costs" (as hereafter defined), which will be contributed by the Company to the Qualified Funds; WHEREAS, the Company has established pursuant to a separate trust agreement with the Trustee a fund which does not qualify as a Nuclear Decommissioning Reserve Fund under Section 468A of the Code and the regulations thereunder (the "Nonqualified Fund");
WHEREAS, the Company has selected the Trustee to provide the specialized services hereinafter set forth because of the experience and administrative expertise of the Trustee to handle the elaborate recordkeeping and filings necessary to the maintenance of the Qualified Funds; 4
i 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 WITNESSETH, that to continue to provide for the Qualified Funds and the making of payments therefrom and the performance of the covenants of the Company and the Trustee set forth herein, the Company does hereby amend and restate the Tmst Agreement and continue to sell, assign, transfer, set over and pledge unto the Trustee, and to its successors in the trust and 2
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its assigns forever, all of the Company's right, title and interest in and to any and all cash l
and property herewith and hereafter contributed to the Qualified Funds, subject to the provisions of Article V hereof and Section 4 of the Special Terms of the Qualified j
Nuclear Decommissioning Reserve Funds, attached hereto as Exhibit A (the "Special j
j Terms").
TO HAVE AND TO HOLD THE SAME IN TRUST for the exclusive purpose of providing funds for the decommissioning of the Units, to pay the administrative costs and other incidental expenses of the Qualified Funds, and to make certain investments, all as hereinafter provided effective on and after January 1,1996.
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ARTICLE I Purcoses of the Funds: Contributions i
Section 1.01. Establishment of the Fund. There are established by this Agreement three separate Qualified Funds, one for each of the Units. Each Qualified Fund shall be maintained at all times in the United States pursuant to this Agreemen'.and as a separate trust in accordance with the laws of the Commonwealth of Pennsylvania.
The Company intends that each of the Qualified Funds shall qualify as a Nuclear Decommissioning Reserve Fund under Section 468A of the Code.
Section 1.02. Purnoses of the Fund. The Qualified Funds are established for the exclusive purpose of providing funds for the decommissioning of the Units for the benefit of the public health and safety. The Qualified Funds shall be maintained in accordance with the NRC regulations in Title 10, Chapter I of the Code of Federal j
Regulations, Part 50. The as' sets of the Qualified Funds shall be segregated from the Company's assets to assure the availability of funds for decommissioning. The assets in each Qualified Fund must be used only as authorized by Code Section 468A and the regulations thereunder. The Qualified Funds shall also be governed by the provisions 3
l of the SpecialTerms, which provisions shall take precedence over any provisions of this Agreement construed to be in conflict therewith. None of the assets of the Qualified Funds 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 Qualified Funds shall be contributed by the Company (or by others approved in writing by the Company) from time to time. The funds the Company shall contribute to the Qualified Funds are
,. w the funds collected from its customers as mandated by the "PUC" (hs hereinafter defined).
ARTICIE II Payments By The Trustee Section 2.01. Limitation on Use of Assets. The assets of each Qualified i
Fund shall be used exclusively (a) to satisfy, in whole or in part, any expenses or liabilities incurred with respect to the decommissioning of the corresponding Unit, 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 Qualified Fund separately from the assets of the Qualified Fund, and (c) to invest in securities and investments pursuant to Section 3.02(a). Use of the assets of the Qualified Funds shall be further limited by the provisions of the Special Terms.
Section 2.02. Certification for Decommissioning Costs. If assets of a Qualified Fund are required to satisfy Decommissioning Costs, the Company shall present to the Trustee a certificate substantially in the form attached hereto as Exhibit B signed by the Company's Chairman of the Board, its President or one of its Vice 4
Presidents, and its Treasurer or an Assistant Treasurer, requesting payment from the j
Qualified Fund. Any certificate requesting payment by the Trustee to a third party or to l
the Company from a Qualified Fund for Decommissioning Costs shall include the following:
(a) a statement of the amount of the payment to be made from the Qualified Fund;.
(b) a statement that the payment is requested to pay Decommissioning I
Costs which have been incurred, and a statement that the Decommissioning Costs to be paid constitute Qualified Decommissioning Costs, as defined in the Special Terms; (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 have not theretofore been paid out of funds of the Qualified 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 a Qualified Fund upon compliance with the procedures set forth in this Section 2.02.
Section 2.03.
Administrative Costs.
The Trustee shall pay the administrative costs and other incidental expenses of the Qualified Funds, as defined in the Special Terms, from the assets of the Qualified Funds.
Section 2.04. Payments between the Funds. The Trustee shall make 5
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payments (i) from a Qualified Fund to the Nonqualified Fund provided such payments s
l are in cash and are in accordance with Section 4 of the Special Terms or (ii) from the Nonqualified Fund to a Qualified Fund provided such payments are in cash and are in accordance with the contribution limitations set forth in Section 2 of the Special Terms, as the case may be, upon presentation by the Company of a certificate substantially in the form of Exhibit C hereto executed by the Company instructing the Trustee to make any ~
such payments. The Trustee shall be fully protected in relying upon such certificate.
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ARTICLE III Concerning The Trust Section 3.01. Authority of Tmstee. The Trustee hereby accepts the trust created under this Agreement. The Trustee shall have the authority and discretion to manage and control the Qualified Funds to the extent provided in this Agreement but does not guarantee the Qualified Funds in any manner against investment loss or depreciation in asset value or guarantee the adequacy of any Qualified Fund to satisfy the decommissioning costs payable from such Qualified Fund. 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 a Fund, or for any other loss or damage which may result from the discharge ofits duties hereunder except for any action not taken in good faith.
Section 3.02. Investment of the Fund.
(a)
The Tmstee shall hold, invest, and reinvest the funds delivered to it hereunder as it in its sole discretion deems advisable, subject to the restrictions set forth in the Special Terms for investment of the assets of the Qualified Funds.
(b)
Upon the written consent of the Company, the Trustee may pool the assets of the Qualified Funds for the purpose ofinvesting their assets with each other, 6
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provided the following conditions are satisfied: (i) the Trustee separately accounts for the contributions, earnings, expenses and distributions of each Qualified Fund; (ii) the Trustee reasonably apportions earnings and expenses among such Qualified Funds; and (iii) the Trustee maintains books and records of the Qualified Funds to enable the Internal Revenue Service to verify that the requirements of Section 468A of the Code and the l
regulations thereunder are satisfied. Any pooling arrangement undertaken pursuant to this Section 3.02(b) can be terminated at any time by any Qualified Fund. No Qualified Fund in a pooling arrangement may substitute for itselfin such arrangement any person that is not a member of that pooling arrangement. In no instance shall the Trustee pool the assets of the Nonqualified Fund with the assets of any of the Qualified Funds.
Section 3.03. Prohibition Against Self-Dealing. Notwithstanding any other provision in this Agreement, the Trustee shall not engage in any act of self-dealing as defined in Section 468A(e)(5) of the Code and Treas. Reg. Q1.468A-5(b) or any corresponding future Treasury Regulation.
Section 3.04. Compensation. The Trustee shall be entitled to receive out of each Qualified Fund reasonable compensation for services rendered by it, as well as expenses necessarily incurred by it in the execution of the tmsts hereunder, provided such compensation and expenses qualify as administrative costs and other incidental expenses of the Qualified Fund, as defined in the Special Terms, with respect to any payment of compensation and expenses from the Qualified Fund.
Section 3.05. Books of Account. The Trustee shall keep true and correct books of account with respect to each Qualified 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, pennit government agencies, such as the PUC or the Internal Revenue Service, to inspect the books of account of the Qualified Funds. The Trustee shall furnish to the Company by the tenth business day of each month a statement for each Qualified Fund showing, with 7
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.
Section 3.06. Reliance on Documents. The Trustee, upon receipt of documents furnished to it by the Company pursuant to the provisions of this Agreement, shall examine the same to determine whether they conform to the requirements hereof.
The Trustee acting in good faith may conclusively rely, as to the truth of s'tatements 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 a Qualified 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 cf 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 actir.g or refraining from acting upon any such written certificate or document furnished 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 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 8
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of such counsel, provided, however, that the Tmstee shall be liable for any consequences resulting from self-dealing as provided in Section 3.03 hereof. Provided indemnification does not result in self-dealing under Section 3.03 hereof or in a deemed contribution to a Qualified Fund in excess of the limitation on contributions under Section 468A of the Code and the regulations thereunder, the Company hereby agrees to indemnify the Tmstee 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 carrying out its duties hereunder, including the costs and expenses of defending itself against any claim ofliability in the premises, provided such loss, liability or expense does not result from self-dealing under Section 3.03 hereof, and provided further, that no such costs or expenses shall be paid if the payment of such costs or expenses is prohibited by section 468A of the Code or the regulations thereunder.
Section 3.08. Resignation. Removal and SuccessorTrustees. TheTrustee 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 subject to the authority of any governmental body havingjurisdiction. AnysuccessorTrusteeappointedhereundershallbeanindependent 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 Tmstee appointed hereunder shall execute, acknowledge and deliver to the Company an appropriate written instrument accepting such appointment hereunder, subject to all the terms and conditions 9
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hereof, and thereupon such successor Trustee shall become fully vested with all the rights, powers, tmsts, duties and obligations of its 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 Qualified Funds and perform such other acts as may be required or be desirable to vest and confirm in said successor Trustee all right, j
title, and interest in the corpus of the Qualified Funds.
a Section 3.09. Merger of Tmstee. 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 transferred, shall be the successor Trustee under this Agreement without the necessity of executing or filing any 4
additional acceptance of this Agreement or the performance of any further act on the part
- of any other parties hereto.
1 ARTICLE IV l
Amendments The Company may amend this Agreement from time to time, provided, however, that this Agreement may not be amended so as to: (i) violate code Section 468A or the regulations thereunder; (ii) cause any of the Qualified Funds to fail to qualify i
as a Nuclear Decommissioning Reserve Fund under Section 468A of the Code and the regulations thereunder; or (iii) violate any applicable regulation of the NRC or PUC. The Qualified Funds have been established and shall be maintained for the sole purpose of
- qualifying as Nuclear Dxommissioning Reserve Funds under Section 468A of the Code and the regulations thereunder. If a Qualified Fund would fail to so qualify because of any provision contained in this Agreement, this Agreement shall be deemed to be 10
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i amended as necessary to conform with the requirements of Section 468A and the regulations thereunder. If a proposed amendment shall affect the responsibility of the
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Trustee, such amendment shall not be considered valid and binding until such time as the j
amendment is executed by the Trustee.
l ARTICLE V i
Irrevocability and Termination.
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Subject to the right of amendment of this Agreement as provided in Article 4
l IV, the trust arrangement under this Agreement shall be irrevocable. A Qualified Fund shall terminate upon the later of (A) the earlier of either (i) substantial completion of 4
decommissioning of the corresponding Unit, as defined in the Special Terms, or (ii) f disqualification of the Qualified Fund by the Internal Revenue Service as provided in l
Treas. Reg. fl.468A-5(c) or any corresponding future Treasury Regulation or (B) l termination by the NRC of the Company's operating licence with respect to the Unit.
Upon termination of a Qualified Fund, the assets of the terminated fund shall be distributed in accordance with any written directive of the PUC concerning termination i
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 Company for the i
benefit of its customers subject to the directive of any governmental body having jurisdiction. Prior to distribution of the assets of a Qualified Fund, the Company shall provide the Trustee with notification that the Qualified Fund has terminated and with j
either (i) the PUC written directive or (ii) a certificate signed by its Chairman of the j
Board, its President or one.of its Vice Presidents and its Treasurer or an Assistant f
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.
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ARTICLE VI Miscellaneous 1
Section 5.01. Binding Anreement. All covenants and agreements in this Agreement shall be binding upon and inure to the benefit of the respecuve parties hereto, their successors and assigns.
Section 5.02. 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 Bank, N.A.
Trust and Investment Department ATTN: Trust Administration Room 151-3345 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 Qualified Funds have been established pursuant to this Agreement in accordance with the requirements for a trust under the laws of the Commonwealth of Pennsylvania, and this Agreement shall be governed by and construed and enforced in accordance with the laws of the Commonwealth of i
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.
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a IN WITNESS WHEREOF, 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 of its Assistant Secretaries; and Mellon Bank, N.A. 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 one of its Assistant Secretaries or one ofits Trust Officers.
WITNESS the due execution and ensealing hereof the day and year first above written.
ATTEST:
NORTHERN STATES POWER COMPANY 0
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Assistant S'ecrEtary Vice President
[ Corporate Seal]
i ATTEST:
MELLON BANK, N.A.
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%e rtisi dent Assis ant Pcesion Tcest Off: Y-t)sc s Q M s> b d 5 orporate Seal]
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1 STATE OF MINNESOTA
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COUNTY OF HENNEPIN
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l On this A b day of November,1996, before me, the undersigned Officer a Notary Public in and for said State and County, personally appeared Rm MCa,s l
who acknowledged himself to be a Vice President of Northern States Power Company, l
a Minnesota corporation, and that he as such being authorized to do so executed the forejoing trust,pgreement for the purposes therein contained by signing the name of fan h Ah by himself as Vice President.
V IN WITNESS WHEREOF, I have hereunto set my hand and official seal.
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N5tary Public My Commission expires: N/->c,o o SHARON K. LASSEK
)
Notary Public-Minnesota l
Mycodas$Ds,200o COMMONWEALTH OF PENNSYLVANIA
)
) ss.
COUNTY OF ALLEGHENY
)
)
On this 72p day of November,1996, before me, the undersigned Officer, a Notary Public in and for said Commonwealth and County, personally appeared EuI G. k'leekner
. who acknowledged himself/herself to be a Vice President of Mellon Bank, N.A., a national banking association and that he/she as such being authorized to do so executed the foregoing trust agreement for the purposes therein contained by signing the narne of Mellon Bank, N.A. by himself/herself as Vice President.
IN WITNESS WHEREOF, I have hereunto set my hand and official seal.
AAULL J
Notary Public My Commission expires:
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Exhibit A to the Nuclear Decommissioning Trust Agreement l
SPECIAL TERMS OF THE QUALFIED l
NUCLEAR DECOMMISSIONING RESERVE FUNDS The following Special Terms of the Qualified Nuclear Decommissioning Reserve Funds (the " Qualified Funds") (hereinafter referred to as the "Special Terms")
will apply for purposes of the Nuclear Decommissioning Tmst Agreement.(the
" Agreement"), dated November 26,1996 between Northern States Power Company, a Minnesota corporation, (the " Company") and Mellon Bank, N.A. (the " Trustee").
Section 1. Definitions. The following terms as used in the Special Terms shall, unless the context clearly indicates otherwise, have the following respective meanings:
(a)
" Administrative costs and other incidental expenses of the Qualified Fund" shall mean all ordinary and necessary expenses incurred in connection with the operation of a Qualified Fund, as provided in Treas. Reg. {l.468A-5(a)(3)(ii)(A) or any corresponding future Treasury Regulation, including, without limitation, federal, state and local income tax, legal expenses, accounting expenses, actuarial expenses and trustee expenses.
(b)
" Qualified Decommissioning Costs" with respect to a Unit shall mean all expenses otherwise deductible for federal income tax purposes, without regard to Section 280B of the Internal Revenue Code of 1986, as amended (the " Code"), or any corresponding section or sections of any future United States internal revenue statute, incurred (or to be incurred) in connection with the entombment, decontamination, dismantlement, removal and disposal of the structures, systems and components of the Unit when it has permanently ceased the production of electric energy, excluding any A-1
I costs incurred for the disposal of spent nuclear fuel, as provided in Treas. Reg. ll.468A-1(b)(5) or any corresponding future Treasury Regulation. Such term includes all otherwise deductible expenses to be incurred in connection with the preparation for decommissioning, such as engineering and other pirinning expenses, and all otherwise deductible expenses to be incurred with respect to the Unit after the actual decommissioning occurs, such as physical security and radiation monitoring expenses, i
(c)
"PUC" shall mean the Minnesota Public Utilities Commission or any.
4 other corresponding governmental authority having jurisdiction over the Units.
l (d)
" Substantial completion of decommissioning" with respect to a Unit l
shall occur on the date that the maximum acceptable radioactivity levels mandated by l
the U. S. Nuclear Regulatory Commission with respect to the Unit are satisfied; provided, however, that if the Company requests a ruling from the Internal Revenue Service, the date designated by the Internal Revenue Service as the date on which substantial completion of decommissioning occurs shall govern; provided, further, that the date on which substantial completion of decommissioning occurs shall be in accordance with Treas. Reg. 61.468A-5(d)(2) or any corresponding future Trea:ury 3cqulation Section 2.
Contributions to the Qualified Funds. We assets of the Qualified Funds shall be contributed by the Company (or by others approved by the Company in writing) from time to time in cash. The Trustee shall not accept any contributions for a Qualified Fund other than cash payments with respect to which the Company is allowed a deduction under Section 468A(a) of the Code and Treas. Reg.
Q1.468A-2(a) or any corresponding future Treasury Regulations. The Company hereby j
represents that all contributions (or deemed contribmions) by the Company to the Qualified Funds in accordance with the provisions of Section 1.03 of the Agreement shall be deductible under Section 468A of the Code and Treas. Reg. {1.468A-2(a) or any l
corresponding future Treasury Regulation or shall be withdrawn pursuant to Section 4 hereof.
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f Section 3. Limitation on Use of Assets. The assets of the Qualified Funds
~ hall be used exclusively as follows:
s (a)
To satisfy,in whole orin part, the Qualified Decommissioning Costs through payments by the Trustee pursuant to Section 2.02 of the Agreement;
.(b)
To pay the administrative costs and other incidental expenses of the l
Qualified Funds; and (c)
To the extent the assets of the Qualified Funds are'not currently required for (a) and (b) above, for making investments permitted under Se'ction 468A of the Code.
Section 4. Withdrawals by the Company. If the Company's contribution (or deemed contribution) to a Qualified Fund in any one year exceeds the amount deductible under section 468A of the Code and the regulations thereunder, the Company may withdraw such excess contribution from the Qualified Fund or instruct the Trustee to withdraw such excess contribution from the Qualified Fund and pay such excess contribution to the Nonqualified Fund, as defined in the Agreement, pursuant to Section 2.04 of the Agreement, provided any such withdrawal occurs on or before the date prescribed by law (including extensions) for filing the federal income tax return of the fund for the taxable year to which the excess contribution relates or the date that is thirty (30) days after the date that the Company receives the ruling amount for such taxable year for withdrawals pursuant to Treas. Reg. Ql.468A-3(j)(3). If the Company determines that withdrawal pursuant to this Section 4 is appropriate, the Company shall present a certificate so stating to the Trustee signed by its Chairman of the Board, its President or one ofits Vice Presidents, and by its Treasurer or an Assistant Treasurer, requesting such withdrawal. The certificate shall be substantially in the form attached as Exhibit C to the Agreement for transfers to the Nonqualified Fund as provided in Section 2.04 of the Agreement and substantially in the form of Exhibit D to the Agreement for withdrawals by the Company.
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Section 5. Taxable Yearfrax Returns. The accounting and taxable y. ar for the Qualified Funds shall be a calendar year for federal income tax purposes. The Company shall assist the Trustee in complying with any requirements under Section 442 of the Code and Treas. Reg. Ql.442-1. The Trustee shall preparc, or cause to be -
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prepared, any tax returns required to be filed by the Qualified Funds, and the Trustee shall sign and file such returns on behalf of the Qualified Funds. The Company shall cooperate with the Trustee in the preparation and examination of such returns.
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Exhibit B to the Nuclear Decommissioning Trust Agreement 1
CFRTIFICATE FOR PAYMENT OI DECOMMISSIONING COSTS
[Name of Trustee],
as Trustee
[ Address]
This Certificate is submitted pursuant to Section 2.02 of the Nuclear Decommissioning Trust Agreement (the " Agreement"), dated 19 between Mellon Bank, N.A. (the " Trustee") and Northern States Power Company, a Minnesota corporation, (the " Company"). 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 out of the Qualified Fund for IUnit Name) to IPayee]
the amount of $
from said Qu dified Fund for the payment of the Decommissioning Costs which have been incurred. With respect to such Decc,mmissioning 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.
- 2. None of the Decommissioning Costs described in Schedule A hereto have previously been made the basis of any certificate pursuant to Section 2.02 of the i
Agreement.
- 3. The amount to be disbursed from the Qualified Fund pursuant to this Certificate shall be used solely for the purpose of paying Qualified Decommissioning B-I t
e
i.
Costs as defined in the Special Terms.
4.
Any necessary authorizations of the PUC or any corresponding governmental authority havingjurisdiction over the decommissioning of the Unit have been obtained.
IN WITNESS WHEREOF, the undersigned have executed this Certificate in the capacity shown below as of O
P By Name:
Title:
By Name:
Title:
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Exhibit C to the Nuclear Decommissioning Trust Agreement CERTIFICATE FOR TRANSFER BETWEEN THE QUALIFIED FUND AND THE NONQUALIFIED FUND
[Name of Trustee],
as Trustee
[ Address]
This Certificate is submitted pursuant to Section 2.04 of the Nuclear Decommissioning Trust Agreement (the " Agreement"), dated
,1996, between Mellon Bank, N.A. (the "Tnistee") and Northern States Power Company, a Minnesota corporation, (the " Company"). 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 instructed as follows (complete one):
To pay $
in cash from the Nonqualified Fund to the Qualified Fund for
[ Unit Name]
- or To pay $
in cash from the Qualified Fund for
[ Unit Name) to the Nonqualified Fund.
With respect to such payment, the Company hereby certifies as follows:
l
- 1. Any amount stated herein to be paid from the Nonqualified Fund to a Qualified Fund is in accordance with the contribution limitations applicable to the Qualified Fund set forth in Section 2 of the Special Terms and the limitations of Section 2.04 of the Agreement.
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- 2. Any amount stated herein to be paid from a Qu ied Fund to the Nonqualified l
Fund is in accordance with Section 4 of the Special Terms. The Company has determined that such payment is appropriate under the standards of Section 4 of the l
Special. Terms.
i IN WITNESS WHEREOF, the undersigned have executed this Certificate in the capacity shown below as of l
i By Name:
Title:
By Name:
Title:
4
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Exhibit D to the Nuclear Decommissioning Trust Agreement CERTIFICATE FOR WI7~iDRAWAL OF EXCESS CONTRIBUTIONS FROM QUALIFIED FUND
[Name of Trustee]
as Trustee
[ Address]
This Certificate is submitted pursuant to Section 4 of the Special Terms attached as Exhibit A to the Nuclear Decommissioning Trust Agreement (the " Agreement"),
dated
,1996, between Mellon Bank, N.A. (the " Trustee") and Northern States t
Power Company (the " Company"). 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 Tmstee, you are hereby authorized and instructed to pay $
in cash to the Company from the Qualified Fund for
[ Unit Name]
With respect to such payment, the Company hereby certifies that withdrawal pursuant to Section 4 of the Special Terms is appropriate and that $
constitutes an excess contribution pursuant to such Section.
IN WITNESS WHEREOF, the undersigned have executed this Certificate in the capacity shown below as of By Name:
Title:
By Name:
Title:
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