ML20155B337

Requests Exemption from FY89 Annual Fee Requirements of 10CFR171.15.Surcharge,in Form of Annual License Fee, Incrementally Increases Facility Cost of Electrical Production More than for Newer,Large Generating Plants

ML20155B337
Person / Time
Site:	Big Rock Point File:Consumers Energy icon.png
Issue date:	09/26/1988
From:	Berry K CONSUMERS ENERGY CO. (FORMERLY CONSUMERS POWER CO.)
To:	NRC OFFICE OF THE EXECUTIVE DIRECTOR FOR OPERATIONS (EDO)
References
NUDOCS 8810060269
Download: ML20155B337 (2)

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I Consumers POWBf Kenneth W Berry Mm Deretor hcarar Lken. ring gyy Genere! Omces 1946 West Pernett mood, Jeckson. MI 49201 e ($17) 7881636 September 26, 1988 Executive Director for Operations Nuclear Regulatory Commission Washington, DC 20555 DOCKET 50-155 - LICENSE DPR BIG ROCK POINT PLANT -

10CTR171 FISCAL YEAR .1489 ANNUAL FEE EXElfPTION REQUEST Pursuant to 10CFR171.11, for the reasons set forth herein, Consumers Power company requests an exemption from the annual fee requirements of 10CFR171.15 for Big Rock Point. As stated in the Federal Regieter notice which published the annual fee rule, the NRC recognizes the problem that some licenseeb of smaller reactors may have in paying substantially increased fees and, therefore, has provided for fee exemptions.

In support of this request, Consumers Power Company submits the following:

1. Big Rock Point is the hofder of NRC License No. DPR-6, dated May 1, 1964.

The plant is the oldest operating General Electric boiling water reactor and one of the oldest operating commercial nuclear generating plants in the United States. Big Rock Point's operating license expites on May 31, 2000. This leaves less than 12 years of plant operation remaining. ,

Because of Big Rock Point's age, many of the generic costs underlying the '

annual fee rule are not relevant to Big Rock Point. i

2. In addition to being one of the oldest commercial reactors Big Rock Point is the smallest operating commercial nuclear generating plant in the United States. Big Rock Point's output is 67 MWe net. This output is more than one order of magnitude less than the average modern vintagt commercial generating plant.

3. A surcharge in the form of an annual license fee incrementally increases Big Rock Point's cost of electrical production by a significantly larger i l amount than for never larger generating plants. An increase of this  ;

I eagnituds is unreasonable for a generating plant of this small size. The impact of this surcharge is approximately 12 times as great as it is for a  !

typical modern vintage plant. Even without increased license fees, recent '

industry analyses have shown Big Rock Point's operating costs on a kilowatt-hour basis to be among the highest in the industry.

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Nucles;r R:gulctory Commission 2 Big Rock Point Plant Annual Fee Exemption Request September 26, 1988 4 Big Rock Point's small size and rural location is less of a potential hazard to public health and safety than most other commercial nuclear generating plants. Plant age, size and location have also been recognized by the NRC in other regulatory contexts. These include the emergency planning zone, insurance and backfitting rules.

5. Over the last several years, Big Rock Point performance has been at or above industry averages in SALP ratingo, capacity factor and availability.

This has resulted in less NRC regulatory effort being spent on Big Rock Point.

6. The NRC previously has granted partial fee exemptions for Big Rock Point for fiscal years 1987 and 1988. The basis for granting these exemptions essentially remains unchanged from those considered in the previously granted exewptions.

7. Comparison of the previously approved fees for Big Roch Point to the fees previously charged newer, larger reactors equates to approximately 8.5%.

For Big Rock Point, nothing has changed to warrant adjustment to this percentage.

Because Big Rock Point's kilowatt-hour output is small and the plant is old, the cost-benefit of the annual fee should be recognized. As stated in the Federal Register notice which published the annual fee rule, it is not the intent of the NRC to promulgate a fee schedule at such a level that smaller, older reactors would find it in their best economic interest to shut down. We feel that the eajority of the regulatory costs and benefit gains associated with Big Rock Point vould reasonably be collected under the 10CFR170 fee structure.

In conclusion, notwithstanding the uncertainty of ongoing congressional action on NRC fte collection Consumers Power Company requests that a partial fee exeeption be granted which requires Big Rock Point to pay not more than 8.5%

of the amount charged a typical boiling water reactor. To ensure compliance with the requirements of 10CFR171.19 Consumers Power Company requests this exenption be granted prior to the first quarterly installment due date.

k Kenneth W ferry Q Director.lNuclear Licensing CC Administrator, Region III, NkC NRC Resident Inspector - Eig Rock Point Director, Office of Administration and Resources Management, h7C Document Control Desk, Washington De, ERC OC0988-0141-NLO2

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