ML20198P755

Affidavit of J Robinson.* Affidavit of J Robinson Describing Events to Date in New England Re Premature Retirement of Npps,Current Plans to Construct New Generation in Region & Impact on Seabrook Unit 1 Operation.With Certificate of Svc

ML20198P755
Person / Time
Site:	Seabrook
Issue date:	12/30/1998
From:	Jay Robinson NEW ENGLAND POWER CO.
To:
Shared Package
ML20198P591	List: ML20198P585 ML20198P650 ML20198P718 ML20198P755
References
LT, NUDOCS 9901070125
Download: ML20198P755 (5)

Text

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UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION In the Matter of )

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North Atlantic Energy Service Corporation and ) Docket No. 50-443 Montaup Electric Company )

) (License No. NPF-86)

. (Seabrook Station, Unit No.1) -)

) ,

AFFIDAVIT OF JAMES S. ROBINSON James S. Robinson, being duly sworn, states as follows:

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I am Vice President and Director of Generation Investments of New England Power Company ("NEP"), the wholesale electric generation and transmission subsidiary of New England 1

Electric System ("NEES"), a public utility holdmg company. s

2. NEP is a minority, noneperating owner of six nuclear units in New England - Seabrook, -

Millstone 3, Connecticut Yankee, Maine Yankee, Vermont Yankee and the Yankee plant in

Rowe, Massachusetts.

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3. I am responsible for oversight of NEP's nuclear investments. In that capacity I serve as a L

member of the Board of Di tectors of the four " Yankee" companies: Yankee Atomic Electric

. Company, Connecticut Yankee Atomic Power Company, Vermont Yankee Nuclear Power

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Corporation and Maine Yankee Atomic Power Company.

L 4. NEP is a 9.95766% joint owner of Seabrook Station.

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f - 5. . The purpose of this affidavit is to describe events to date in New England with regard to the premature retirement of nuclear units, the current plans to construct a significant amount of i

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9901070125 990104 PDR ADOCK 05000443 $

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l new generation in the region and the impact this may have on the going-forward safe operation of i

Seabrook Unit I and on adequate decommissioning funds being available to decommission the l.

. unit.

6. Since 1992, four of New England's nine commercial nuclear units have been pennanently L

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. shutdown - the units operated by Yankee Atomic (located in Rowe, Massachusetts), Connecticut Yankee (located in Haddam Neck, Connecticut) and Maine Yankee (located in Wiscasset, Maine). Also, Millstone Unit 1 (operated by Northeast Utilities and located in Waterford.

~ Connecticut), has been permanently retired. This represents almost one-half of the nuclear units which have operated in New England. The announced retirements of those units occurred in

1992,1996,1997 and 1998, respectively, prior to implementation of a fully competitive electric generation markets. All of these units were shutdown prematurely; well in advance of the expiration of their respective operating licenses.

7. Given the pending competitive generation marketplace in the region,60 new generating facilities, totaling in excess of 30,000 megawatts, have been proposed or are under construction, in New England'. This exceeds the total amount of megawatts currently installed and in-service in the six New England states. Although it is unlikely that all 60 projects will be constructed and placed into service, the large number of project announcements is indicative of the fact that the region is seen as providing opportunity for new and competitive markets.

8. With regard to this proceeding, the amount of money to be deposited into Montaup's

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Decommissioning Trust Fund for Seabrook at the time of closing (of the sale of Montaup's

' Based upon information obtained from ISO New England, Inc., the entity which l coordinates, reviews and provides technical input into the transmission interconnection study

. process in New England.

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e Seabrook interest to Little Bay Power Corporation) is based upon a $489 million cost estimate in 1998 dollars assuming decommissioning commences at the end ofits commercial operating license term in 2026. While Montaup's prorata obligation of the $489 million esti. mate is about

$14.2 million, only $11.8 million will have been set aside. The decommissioning trust funds are expected to grow over time based on the assumption that the earnings on the funds will grow at a rate faster than the corresponding obligation. In the event that the unit commences decommissioning at a time prior to the funds having grown to match the obligation, a deficiency could exist. It is not evident at this time that Little Bay Power will have the ability to fund the deficiency.

9. Given the fact that four nuclear units have been prematurely retired in New England to date and significant additional generation is currently under construction or planned, it is reasonable to assume that the remaining nuclear units in New England, including Seabrook Unit I will face increasing competitive pressure and may not operate through the term of their existing operating licenses. This increases the likelihood that a funding deficiency may exist at some time in the future for Montaup/Little Bay's share of operating expenses and the decommissioning obligation for Seabrook.

Signed under the pyns and penalt ies of perjury, this 30th day of December,1998.

Niew 2 %

es S. Robinson

Certificate of Service 0.0CKETED USNRC I hereby certify that copies of the foregoing have been served upon the following persons by.U.S. mail, first class, and in accordance with the requirements of 10 cpft JAR 144 A10 :24 OFF7 c 3D ,

RUL iw ,;

Office of Commission Appellate - AdministrMWJudg'el IAFF Adjudication B. Paul Cotter, Jr., Chairman U.S. Nuclear Regulatory Commission Atomic Safety and Licensing Washington, D.C. 20555 Board Panel Mail Stop - T-3 F23 Washington, D.C. 20555 Administrative Judge Administrative Judge Charles N. Kelber ~ Linda W. Little Atomic Safety and Licensing Board Panel Atomic Safety and Licensing Mail T-3 F23 Board Panel Washington, D.C. 20555 5000 Hermitage Drive Raleigh, NC 27612 Steven R. Horn, Esq. Robert A. Backus, Esq.

- Office of the General Counsel Backus, Meyer, Solomon,

Mail Stop 15 B18 Rood & Branch

! - U.S. Nuclear Regulatory Commission P.O. Box 516 Washington, D.C. 20555 Manchester, NH 03105

- Lillian M. Cuoco, Esq. David A. Repka, Esq.

Senior Nuclear Counsel Winston & Strawn Northeast Utilities Service Company 1400 L Street, N.W. I l

- P.O. Box 270 Washington, D.C. 20005 i Hartford, CT 06141 1

Mr. Robert S. Wood , , Mr. Woodbug P. Fogg, P.E.

Office of the Nuclear Reactor Regulation Director U.S. Nuclear Regulatory Com' mission New Hampshire Office of 1

.- Washington, D.C. 20555 Emergency Management State Office Park South ,

107 Pleasant Street Concord, NH 20037 i

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Mr. Gerald Chamoff Mr. Frank Getman, Jr.

l Shaw, Pitman, Potts & Trowbridge Great Bay Power Corporation l 2300 N Street, N.W. 20 International Drive, Suite 301 Washington, D.C. 20037 Portsmouth, NH 03801-6809 )

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- Mr. Kevin A. Kirby Vice President, Power Supply Eastern Utilities Associates 750 West Center Street P.O. Box 543 West Bridgewater, MA 02379 l

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' Dated at Washington, DC, this 31" day of December,1998 )

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Edward Berlin, Esq.

[Swidler Berlin Shereff Friedman, L.L.P. j 3000 K Street, NW l Suite 300 I Washington, DC 20007-5116 )

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