ML20195E013

Provides Encl Info as Evidence of Jcp&L,Meed & Penelec Commitment to Assure Continued Financial Support of Decommissioning Efforts of SNEC

ML20195E013
Person / Time
Site:	Saxton File:GPU Nuclear icon.png
Issue date:	06/03/1999
From:	Furlong D GENERAL PUBLIC UTILITIES CORP.
To:	NRC OFFICE OF INFORMATION RESOURCES MANAGEMENT (IRM)
References
1920-99-20304, B-99-22, B000-99-022, NUDOCS 9906100136
Download: ML20195E013 (6)

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GPU Nuclear,Inc.

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(; One Upper Pond Road Persippany.NJ 07054-1095 NUCLEAR Tel 973-31s 7000 4

June 3,1999 B000-99-022 -

1920-99-20304 U. S. Nuclear Regulatory Commission Attention: Document Control Desk ,

Office of Nuclear Regulatory Research j

. Washington, D.C. 20555

Subject:

Decommissioning Financial Assurance for the Saxton Nuclear Experimental Corporation Facility

Dear Sir:

In response to a letter dated May 3,1999, and a follow-up conference call of May 2.0,1999, the following is provided as evidence ofJersey Central Power & Light Company, Metropolitan Edison Company and Pennsylvania Electric Company's (Saxton owners) commitment to assure the continued financial support of the decommissioning efforts of the Saxton Nue; ear Experimental Corporation (SNEC) Facility. This decommissioning effort is scheduled for completion in early 2001.

Attachment 1 indicates an estimated decommissioning trust shortfall of $6.1 million. This amounts to less than .2% of the total 1998 annual revenues of the Saxton owners. As the result of restructuring proceedings, there are rate caps in both states that prevent the owners from increasing revenues to cover the shortfall until after Saxton decommissioning is scheduled to be completed. The estimated shortfall will be covered by the general funds of the owners and in

. fact, we have already funded $2.0 million from the general funds in 1999 to support the Saxton i decommissioning work.

J As evidence of the owners commitment to complete Saxton decommissioning, Attachment 2 is an authorization by the SNEC Board of Directors funding the expenditures for Saxton 4, decommissioning through 1999 and providing an updated forecast through completion. This 0 I l authorization permits GPU Nuclear, Inc. to perform the decommissioning work. O I

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U. S. Nuclear Regulatory Commission

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Page Two As a result of the information provided herein, GPU Nuclear, Inc. believes that financial assurance for decommissioning the Saxton Nuclear Experimental Corporation Facility is met.

If you have any questions, please contact Dennis Kelly at 609-971-4246.

Sincerely yours, D. M. Furlong Comptroller, Financial & Planning Services DMF/kmb c: NRC Project Manager N'RC Project Scientist, Region I

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JUUENNE J. SCHOFFSTALL NOTARY PUBUC OF NEW JERSEY My Commission Expires June 24,2002

ATTACHMENT 1 SAXTON DECOMMISSIONING l

Funding & Liability Status

($ in Thousands)

JCP&L MET-ED PENELEC TOTAL 1

Cost Estimate @ 3/31/99 $15,840 $11,520 $8,640 $36,000 Expenditures-to-Date i1.666 8.510 6.338 26.514 Liability at 3/31/99 4,174 3,010 2,302 9,486 Trust Balance @ 3/31/99 35 1,507 829 2,371 Future Collections 1.056 ---- -----

1.056 To Be Funded by Saxton Owners $3,083 $1.503 $1,473 $6,059 Annual Revenues (1998) $2,069,648 $919,394 $1,032,226 $4,C21,468

% Annual Revenues .15% .16% .14% .15%

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l GU subjoet: FUNDING AUTHORIZATION FOR SNEC Date: January 14,1999 FACILITY DECOMMISSIONING PROJECT From: G. A. Kuehn, Jr. - Director, SNEC Facility Loeation: TMI-EOF To: SNEC Board of Directors F. D. Hafer D. Baldassari T. G. Broughton  !

M. B. Roche I A. H. Rone It is requested that the SNEC Board of Directors authorize additional funding of $12.0  !

million to support the 1998 and 1999 work activities listed below. The revised total approved funding will be $31.8 million. The request is based upon 1998 actuals and TLG's

" Decommissioning Cost Study Update for SNEF" dated December 1998.

Total Approved $ 19.8 i Current Request for Funds $12.0 I Revised Level Through 1999 $31.8 e Large component removal and disposal a Removal and disposal cf retaaining component:

• Rempval and disposal of concrete components e Radwaste processing The following is the forecasted spending for Saxton:

TOTAL ACTUAL FORECAST PROJECT Thru 12/31/98 1999 2000 2QQL 25.4 6.4 3.0 0.7 35.5

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. T FUNDING AUTHORIZATION FOR SNEC

. FACILITY DECOMMISSIIONING PROJECT j

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Should you require additional information, please call me at 717-948-8720. i 1

G. A. Kuehn, Jr.

EFO/GAK/kmb i Attachment a4 me

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We the SNEC Board of Directors authorize additional funding in the amount of $12,000,000 for the SNEC Facility Decommissioning Project.

l Concurrence:

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T. G. Broughtdh 6L u-D. B assari l

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M. B. Roche I

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