ML20206M492

Informs of Review of 861028 Request for Partial & Permanent Exemption from Annual Fee Requirements of 10CFR171.Partial Exemption Appropriate Limited to FY87.Computation of Proposed Adjusted Annual Fee Encl

ML20206M492
Person / Time
Site:	La Crosse File:Dairyland Power Cooperative icon.png
Issue date:	04/15/1987
From:	Stello V NRC OFFICE OF THE EXECUTIVE DIRECTOR FOR OPERATIONS (EDO)
To:	Taylor J DAIRYLAND POWER COOPERATIVE
References
NUDOCS 8704200121
Download: ML20206M492 (3)

Text

APR 151987 -

Docket No. 50-409 Dairyland Power Cooperative ATTN: Mr. James W. Taylor General Manager P.O. Box 817 2615 East Avenue, South La Crosse, WI 54602-0817 Gentlemen:

By application dated October 28, 1986, you requested a partial and pennanent exemption from the annual fee requirements of 10 CFR 171 for the La Crosse Boiling Water Reactor (LACBWR), Specifically, you requested that the annual fee be reduced from $950,000 per year to

$55,000 per year. In your application, you stated that LACBWR is one of the oldest and smallest comercial nuclear power plants in the country.

It is your conclusion that the impact of the annual fees on power production costs is substantially greater than larger reactors.

We have completed our evaluation of your application in accordance with the provisions of 10 CFR 171.11 and from this evaluation we have deter-mined that a partial exemption is appropriate for the LACBWR Plant. The

$950,000 annual fee has been reduced to $56,000. This partial exemption is limited to FY 1987 only and, therefore, is not a permanent exemption from the fee requirements of 10 CFR 171.

To determine the most equitable method of adjusting the annual fee for your plant, various approaches were considered. These approaches are enclosed for your information. As you can see from the enclosure, the approaches were for fees based on the (1) thennal MW power rating (this adjustment approach could only be considered because it had been determined that the LACBWR Plant met the intent of 10 CFR 170.11), (2) impact on the licensee, (3) comparison of mill rate increases, and (4) licensed operating life of the reactor. Although the results were fairly close in dollar amounts, the amounts for items 1 and 2 were averaged to determine an equitable and fair adjustment of $56,000 for i LACBWR.

payment of $237,500 Since and yourDairyland hasfor annual fee made the first FY 1987 hasFY 1987 been quarterly reduced to $56,000, we are taking the necessary steps to refund the sum of $181,500 to you by electronic transfer. We plan to complete this wire transfer within a week after your receipt of this letter.

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8704200121 870415 PDR ADOCK 05000409 )

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If there are questions regarding this matter, contact Mr. Ronald M.

Scroggins on 301/492-4750.

Sincerely, 3 cur st.e1[

Victor Stello, Jr.

Executive Director for Operations

Enclosure:

Computation of Proposed Adjusted Annual Fees DISTRIBUTION w/ encl:

• Docket +Filea NRC PDR Local PDR VStello, E00 RScroggins, RM 1". , si GJohnson,RM/A TRothschild RFonner, 0GC RSmith, OGC HDenton, NRR RVollmer, NRR LSolander, NRR RBernero, NRR JZwolinski, NRR TRotella, BWD-1 RBevan, BWD-1 CJanerson, BWD-1 CJHolloway, LFMB Glear, PAD-1 EMcKenna, PAD-1 RMDiggs, LFMB LFMB R/F (2)

RM/A R/F DW/REJ/pairyland ,

Eb o t W 1[-lo' 0FFICE  : F :RM/ALF :0GC

EDO  :

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DATE #/7/87 i

/87 :4/9/87 e

Y/T/87  : A-

/87  : / /87  :

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Enclosure COMPUTATION OF PROPOSED ADJUSTED ANNUAL FEE TO BE ASSESSED USING THE AVERAGE OF TWO METHODS SHOWN BELOWN La Crosse tiethods Used to Detennine Adjusted Fee:

1. Thermal llegawatt 165 MWt Rating Ratio 2671 MWt 2

Plant /AveragePlant/ $58,000

2. Comparable impact of $55,000 Annual Fee on Plant Kilowatt hour costs 3/

3. Proposed Adjusted Annual $56,000 Fee - Average of methods 1 and 2

(% of Unadjusted Annual Fee) (6%)

Other Items For Comparison:

Increase in mill rateN 3 mills per KWh Remaining years of 16/40 i operation 40%

E nce0 the determination is made that a partial exemption, in the form of an adjusted fee, is appropriate and after applying the factors in 10 CFR 171.11, several possible methods may be used to determine the adjusted fee either singly or in combination.

Using these two methods, the resultant dollar amounts were averaged to arrive at the adjusted annual fee. The adjusted fee under Part 171 is collected in addition to fees collected under 10 CFR 170.

2/Under this method, the adjusted fee is determined by multiplying the unadjusted annual fee ($940,000) by the thermal megawatt rating of the plant divided by I the average thermal megawatt rating of the 101 licensed plants (2671 Mwt).

-3/Under this method, the unadjusted annual fee ($940,000) is adjusted such that l the incremental kilowatt-hour costs for the plant are similar to the incremental '

costs for larger modern plants.

U Th e amount of increase if the 10 CFR 171 annual fee of $950,000 were to be used.