ML20198K862

Submits Annual Update to Financial Assurance Instruments of Decommissioning Funding Plan

ML20198K862
Person / Time
Site:	Framatome ANP Richland
Issue date:	12/29/1997
From:	Maas L SIEMENS POWER CORP. (FORMERLY SIEMENS NUCLEAR POWER
To:	Schwink W NRC OFFICE OF NUCLEAR MATERIAL SAFETY & SAFEGUARDS (NMSS)
References
LJM:97:105, NUDOCS 9801150115
Download: ML20198K862 (8)

Text

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s pi: a 1 [5.b7 SIEMENS December 29,1997 LJM:07:105 U.S. Nuclear Regulatory Commission Attn: W. S. Schwink, Acting Chief Licensing Branch Division of Fuel Cycle Safety and Safeguards, NMSS Washington, DC 20555

Dear Mr. Schwink:

Re:

Docket No. 70-1257 License No. SNM-1227 Decommissioning Funding Plan in accordance with Siemens Power Corporation's (SPC's) Decommissioning Funding Pla, SPC horewith submits an annual update to the Financial Assurance instruments of the Decommissioning Funding Plan.

Ver truly yours, b

L. J. Maas, Manager Regulatory Compliance LJM:pg

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Siemens Pow 'r Corporation Nuclear Division ~

2101 Horn Rapids Road Tel:

(509) 375 8100 Engtswering & Manufacturing P.O. Box 130 Fax:.

(509) 375-8402-RicNand. WA. 99352 o130

i SIEMENS U.S. Nuclear Regulatory Commission Name wedeund Division of fuel Cycle Safety Branch and Dearun"*

ZFH il Te w on>2m3iss Safeguards, NMSS

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• Washington, D.C. 20555-0001 Attn.: Michael F. Weber, Chief Date December 17.1997 Re:

Decommissioning Financial Responsibility License No. SNM-1227

Dear Mr. Weber,

I am the Chief Financial Officer of Siemens Aktiengesellschan, a corporation of the Federal Republic of Germany. This letter is in support of Siemens Aktiengesclischan's use of the financial test to demonstrate financial assurance, as specified in 10 CFR Part 70.

Siemens Aktiengesclischaft guarantees, through the parent company guarantee submitted to demonstrate compliance under 10 CFR Part 70, the decommissioning of the following facility owned and operated by Siemens Power Corporation, a subsidiary of Siemens Aktiengesclischan. The current cost estimate, so guaranteed, is shown for the facility:

Name of Location of Current hcility

&cility Cost Estima_tc Siemens Power 2101 Hom Rapids Road

$26,581,475 Corporation Richland, WA 99352 License No. SNM 1227 Siemens AktiengesellschaR is not required to file a Form 10K with the U.S. Securities and Exchange Conunission.

He fiscal year of Siemens Aktiengesellschaft ends on September 30. %c figures for the following items marked with a double asterisk are derived from Siemens Aktiengesellschaft's independently audited, consolidated financial statements for the year ended September 30,1997.

' b Zentratabteilung Finanzen Leitung.

Onefadresse Hausadresse' Dr. KarhHermann Baumann Siemens AG Wmelsbachervatz 2 ZI B II 80333 Munchen 80312 MUnchen Teiefan (0 89) 6 36 - 0 Telen E2100 ste d s,ement Aktergeseftscha't - Vorsitzender des Autsachtsrats Hermann Fran Vorstand He.nrich v. Pie or. Vorstt ender F.ttgheder Ka449ermann Baumanr w

Ad# HJtti, Whef M rdoard 6 Krubala. Horst Langer, Wattram O Martinsert Hein: Joa? m Neuburger. Peter PrMia Jurgen Partr$kt Class nevrich.

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F' 4al Test Aherr.stive ',i 1.

Decommissioning cost estimate for facility, J

License No. SNM 1227.

$26,581,475 q

2.* -. Current bond rating of most recent issuance of this Standard & Poor's:

AAA firm and name of rating service.

Moody's:

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t 3.4 Date ofissuance of bond 06/24/1992 4.*

Date of maturity of bond 06/24/2002.

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Tangible net worth plus accrued decommissioning costs

$ 14,888,000,000 6."

Total assets in United States (rcquired only ifless than 90 percent of firm's assets are located in the United States.)

$ 8,944,414,000 YSE HQ 7.

. Is line 5 at least $10 million?

X.

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Is line 5 at least 6 times line !?

X

- 9." - Are at least 90 percent of firm's assets located in the United States? If not, complete line 10.

X 10.

Is line 6 at least 6 times line !?

X

.I hereby certify that the content of this letter is tme and correct to the best of my knowledge.

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. Dr. K.-H. Baumann Chief Financial Officer l;

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SIEMENS

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• The Standard & Poor's AAA rating was obtained by Siemens Aktiengesellschaft and is not assigned to a-specific debt issue. The Moody's Aal rating was obtained for the guarantood debt of a whollyowned subsidiary of Siemens Aktiengesclischaft, Siemens Capital Corporation.

• • Denotes figure derived from the Siemens Aktiengese!!schaft consolidated financial statements for the year ended September 30,1997.

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liektf astra'le 6 Poattach 8105 29 Telefon (0 89) 92 82-00 D 81925 Manchen D 81905 Manchen Telefax (0 89) 92 02-20 00 Siemens Aktiengesellschaft Zentralabteilung Finanzen Attn.: Dr. Seeberg Wittchbacherplatz 2 80333 Munchen 17 December 1997 - ms/ds e.

Dear Dr. Seeberg,

At your request, we have performed the procedures enumerated below with respect to the Siemens Aktiengesellschaft " Schedule Reconciling Amounts Contained in Chief Financial Of0cer's letter With Amounts included in the Consolidated Financial Statements for the Year Ended September 30,1997" set forth in the accompanying Exhibit I.

Siemens Aktiengesellschaft prepared the infonnation contained in Exhibit I to demonstrate its financial responsibility under the U.S. Nuclear Regulatory Com:nission's financial assurance regulations 10 CFR Part 70, and to assist its wholly-owned subsidiary and licensee Siemens Power Corporation (License No. SNM-1227) in complying with such regulations.

Our procedures, with respect to the information contained in Exhibit I, were as follows:

1. We c. greed the amounts entitled " Stockholder's equity" and " Intangible assets, net" to amounts reported on the Siemens Aktiengesellschaft consolidated ba'ance sheet as of Sep:ettber 30,1997 which is included in the Siemens Aktiengesellschaft consolidated financial statements for the year ended September 30,1997. We have previously examined the Siemens Aktiengesellschaft consolidated Snancial statements for the year ended September 30,1997 in accordance with German generally accepted auditing standards and have issued our report thereon dated December 3,1997.

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2. We agreed the amount entitled "Accmed decornmissioning costs" to an amount included in a Siemens Aktiengesellschaft prepared schedule. This schedule analyses the components of the amount reported as "other accruals" on the Siemens Aktien-gesellschsit consolidated balance sheet as of September 30,1997 which is included in the Siemens Aktiengesellschaft consolidated financial staternents for the year ended September 30,1997.

3. We determined the arithmetical accuracy of the amounts entitled " Tangible net worth" and " Tangible net worth plus accrued decommissioning costs",

4. We agreed the amount in the colurnn captions "Per Chief Financial Officer's Letter" to the amount reported as " Tangible net worth plus accrued decorrunissioning costs" in the 17 December 1997 letter from Dr. Karl-liermann Baumann. Chief Financial Officer of Siemens Aktiengesellschaft, to tk U.S. Nuclear Regulatory Commission.

5. We agreed the amount titled " Total assets in United States" to the amount reported on the Siemens Corporation consolidated balance sheet as of September 30,1997, which is included in the Siemens Corporation Consolidated Financial Statements for September 30,1997.

6. We can further state that Siemens Aktiengesellschaft consolidated tangible net worth plus accmed decommissioraag costs as compu'ed in accordance with United States Generally Accepted Accounting Principles is in excess of six (6) times the decommissioning cost estimate for facility, License No. SNM-1227 and that Siemens Aktiengesellschaft's total consolidted assets in the United States have been computed in accordance with United States Generally Accepted Accounting Principles.

Because the above procedures are not sufficient to constitute an examination made in accordance with German generally accepted auditing standards, we do not express an opinion on any of the amounts, accounting records or the letter referred to above. In connection with the procedures referre:l to above no matters came to our attention that caused us to believe that the infonnation contained m Exhibit I should be adjusted.11ad we perfonned additional procedures, matters might have come to our attention that would have been reported to you.

This report relates only to the Siemens Aktiengesellschaft " Schedule Reconciling Amounts Contained in Chief Financial Officer's Letter With Amounts included in the Consolidated Financial Statements for the Year Ended September 30,1997" set forth in the accompanying Exhibit I and does not extend to any other documents.

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Confm eron 17cxwnbx I!67 Tave 3 It is understood that this report is to be provided by the management of Siemens Aktiengesellschaft to the U.S. Nuclear Regulatory Conunission to comply with the financial assurance regulations referred to in the first paragraph of this report. This report should not be referred to or distributed for any other purpose without our prior consent.

Very truly yours, KPMG Deutsche Treuhand-Gesellschaft Aktiengesellschaft Wirtschaftsprofungsgesellschaft h

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Dr. Marianne Schramm Martin Close Attachment - Exhibit I r

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M Exhibit I SIEhfENS AKTIENGESELLSCHAFT SCHEDULE RECONCILING AAIOUNTS CONTAINED IN CHIEF FINANCIAL OFFICER'S LETTER WITH AMOUNTS INCLUDED IN TiiE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED SEPTEMitER 30, 1997

$ in millions Per Per Chief Consolidated Financial Financial Reconciling Officer's Statements 11cm Lc!1ct i

Stockholder's equity 16,090 Less Intangible assets, net 1.223 Tangible net worth 14,867 Add Accrued decommissioning cost (Mixed Waste 12,13alance of Plant 9) 21 Tangible net worth plus accrued decommissioning costs 14,888 Total assets in United States 8,944

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