ML20203C749

Informs That Util Will Continue as Licensee for Plant & Will Ensure Continued Compliance W/All Conditions of License & Applicable Provisions of 10CFR.Sale of Yankee Nuclear Svcs Division'S Assets,Discussed

ML20203C749
Person / Time
Site:	Yankee Rowe
Issue date:	12/05/1997
From:	Jeffery Grant YANKEE ATOMIC ELECTRIC CO.
To:	Fairtile M NRC (Affiliation Not Assigned), NRC OFFICE OF INFORMATION RESOURCES MANAGEMENT (IRM)
References
BYR-97-060, BYR-97-60, NUDOCS 9712150413
Download: ML20203C749 (4)

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BYR 97-060 December 5,1997 - -

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United States Nuclear Regulatory Commission Document Controi Desk j]

.4 Washington, D.C. 20555

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Attention: Mr. Morton B. Fairtile 7

Senior Proje.ct Manager l Non-Power React,rs and Decommissioning Directorate ]

Division of Operating Reactor Support J i

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Reference:

(a) License No. DPR-3 (Docket No. 50-29)

(b) Yankee Nuclear Power Station FS AR, Section 502 (c) Yankee Nuclear Power Station FS AR, Section 501

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(d) Letter, ll.T. Tracy (Y AEC) to Dowment Control Desk (NRC),

Decommissioning Funding Assurance Report and Certification, 7/25/90, BYR 90-102 (e) FERC Docket No. ER 95-835-000 ( April 10,1996)

Subject:

SALE OF Y ANKEE NUCLEAR SERVICES DIVISION ASSETS

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Dear Mr. Fairtile:

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On December 1,1997 the assets of Yankee Atomic Electric Company's (Y AEC) Yankee '

Nuclear Services Division (YNSD) were acquired by Duke Engineering and Services (DE&S).

The subject transaction between Y AEC and DE&S will not affect the continued existence of YAEC nor Y AEC's ownership of the Yankee Nuclear Power Station (YNPR). Y AEC will continue as the licensee for YNPS and will ensure continued compliance with all conditions of its ,

I license and the applicable provisions of Title !0 of the Code of Federal Regulations. Consistent

, with the information provided in the YNPS Final Safety Analysis Report (Reference (b)), / -

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t United States Nuclear Regulatory Commissian December 5,1997

' Document Control Desk Page 2 Don Davis '. sill continue as the Chief Executive Officer and President of YAEC, the YAEC corporate officer responsible for YNPS nuclear safety. Mr. Davis remains empowered by the YAEC Board of Directors to take any measures necessary to ensure the safe storage of spent fuel at YNPS and the safe and efficient decommissioning of YNPS. Mr. Davis also retains the ultimate authority to direct day-to-day activities. The on site decommissioning organization continues to be directed by the YNPS Site Manager /Manacer of Operations, who reports to the Decommissioning Manager, who in turn reports directly to the President.

DE&S has been retained by YAEC to provide certain project management, quality assurance, engineering support, procurement and other related technical and administrative support services. All work performed by DE&S under the terms of this agreement will be performed in accordance with the applicable YAEC programs and procedures, which will remain in effect. The overwhelming majority of the staff which will be providing these services will be former YAEC employees who have accepted employment wit. DE&S. The YAEC/DE&S agreement identiries key personnel by name to assure the maximum degree of continuity in the YNPS decommissioning effo't.

The new telationship between YAEC and DE&S will enhance the ability of YAEC to accomplish its primary mission of safely decommissioning YNPS. Experienced YAEC personnel who might havc felt compelled to seek alternative employment opportunities as the conclusion of YNPS decommissioning draws nearer now have the option of " completing the job" with reasonable assurance of one ing employment as members of the DE&S team. Also, if the need arises YAEC will be able to take advantage of the additional resources afforded by one of the world's leading architect-engineer companies.

The YnEC Operational Quality Assurance Program (Document No. YOQAP-l-A), will remain in effect and will apply to work that is safety-related and/or " requires QA." Effective December 1,1997, Nuclear Service Division responsibilities defined in the YAEC QA Program have been delegated to DE&S. As the President of YAEC, Mr. Davis will retain the final management authority for assuring that the QA Program is appryriately implemented within the si ope of services provided by DE&S. Organizational responsibility for the continuing review and audit of the YAEC Operational QA Program has been assigned to DE&S Quality Services.

The sale of YNSD assets to DE&S in no way impacts the f'mancial assurance provided to NRC that all decommissioning funds as approved by the Federal Energy Reguiatory Commission (FERC) will be collected. As described in the YNPS FS AR (Reference (c)), Y AEC is currently collecting decommissioning funds through its Power Contracts. The collections are deposited in an independent and irrevocable trust at a com.aercial bank, with the principal and interest used to dischar e decommissioning obligations as they are incurred. This trust was determined by NRC to be in compliance with 10CFR50.75(c)(1)(ii) and a copy of the trust document has been provided to the NRC (Reference (d)). The Power Contracts obligate the utilities that were numme

United States Nuclear Regulatory Commission December 5,1997

Document Control Desk Page 3 purchasers of power generated by YNPS for the full costs of decommissioning YNPS, including the disposition of the facility's spent fuel. The FERC orders received by Yankee acknowledge the continuing obligation of the purchasers with respect to the full cost of decommissioning YNPS.

Thus, the acquisition of the assets of YNSD by DE&S will have no effect upon the tcchnical or financial qualifications of YAEC to complete the decommissioning of YNPS. 'lhe information provided in this letter has been reviewed by legal counsel to YAEC. If you have any questions please contact me at (978) S68-2112.

Sincerely, YANKEE ATOMIC ELECTRIC COMPANY

~ SL(lN . ht Ja :e M. Grant commissioning Manager numw2 m

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- United States Nuclear Regulatory Conunission .- - December 5,1997 -

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