ML20138G829
| ML20138G829 | |
| Person / Time | |
|---|---|
| Site: | Monticello, Prairie Island  |
| Issue date: | 12/20/1996 |
| From: | Richard Anderson NORTHERN STATES POWER CO. |
| To: | NRC OFFICE OF INFORMATION RESOURCES MANAGEMENT (IRM) |
| References | |
| NUDOCS 9701020288 | |
| Download: ML20138G829 (2) | |
Text
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Northern states Power Company 1717 Wakonade Dr. E.
Welch, MN 55089 Telephone December 20,1996 10 CFR Part 50 Section 50.75 U S Nuclear Regulatory Commission Attn: Document Control Desk Washington, DC 20555 i
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 a deviation from the requirements of 10CFR50.75, ' Reporting and Recordkeepina For Decommissionina Plannina' This letter has been prepared to document a finding found during an internal audit by Northern States Power Company's Generation Quality Services department j
regarding the requirements contained in 10CFR50.75, ' Reporting and Recordkeeping For Decommissioning Planning', Section (b). Section (b) requires:
Each electdc utility applicant for or holder of an operating license...shall submit a decomn'is?ioning report,..containing a certification that financial assurance for decommi'is'oning will be provided in an amount which may be more but not less than the 6:nount statedin the table in paragraph (c)(1) of this section, adjusted annually using a rate at least equal to that stated in paragraph (c)(2) of this section,..
The internal auditors could not verify that the annual adjustment calculations were done for the years 1991,1992,1994, and 1995 and appropriate records were maintained. In addition the internal auditor found, starting in 1993, Northern States Power Company's funding methodology to be nonconservative, resulting in under funding below the NRC minimum required funding levels.
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Page 2 of 2 The cause of this finding was a lack of understanding by the responsible NSP' Capital Asset Accounting department of the NRC requirements for performing an annual calculation of the minimum decommissioning funding requirement. This NSP Capital Asset Accounting department had been following the Minnesota Public i
Utility Commission (MPUC) requirements under which a Review of Nuclear Plant Decommissioning report is prepared and submitted to the MPUC tri - annually for approval of proposed funding rates. The decommissioning report details the decommissioning cost estimate study and an analysis of fund methodology, providing the basis for the proposed funding rates. When the decommissioning funding requirement went into effect July 26,1990, the NRC external fmding minimums were calculated for each reactor and were included in the report to the MPUC. NSP's funding levels have always been in excess of the NRC minimum requirement through 1992; however, since the annual calculations were not done, the escalation in the burial rates in 1993 were not recognized resulting in the deviation.
The corrective actions that are being initiated to resolve this issue are:
j 1.
Perform annual adjustment calculations and maintain records for the years 1991,1992,1994, and 1995.
2.
Develop method to:
- a. Ensure annual adjustment calculations are performed and maintained as
]
records i
- b. Ensure funding method meets the required NRC minimum levels.
These correctives actions are scheduled to be completed by the end of the first quarter,1997.
Please contact Roger Anderson (612) 330-2050 if you require further information related to this submittal.
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/K Roger O. Anderson Director of Licensing and Management issues c:
Regional Administrator-Ill, NRC NRR Project Manager, NRC Senior Resident inspector, NRC State of Minnesota Attn: Kris Sanda J E Silberg