ML20206M694

Grants Partial Exemption from 10CFR171 Annual Fee Requirements for 1987,in Response to Util Request for Partial & Permanent Exemption.Method for Adjustment of Fee Discussed.Computation of Fee Encl

ML20206M694
Person / Time
Site:	Yankee Rowe
Issue date:	04/15/1987
From:	Stello V NRC OFFICE OF THE EXECUTIVE DIRECTOR FOR OPERATIONS (EDO)
To:	Soucy A YANKEE ATOMIC ELECTRIC CO.
References
NYR-87-83, TAC-67199, NUDOCS 8704200156
Download: ML20206M694 (3)

Text

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,s APR 151987 Docket No. 50-29 Yankee Atomic Electric Company ATTN: Mr. A. R. Soucy, Treasurer 1671 Worcester Road Framingham, MA 01701 Gentlemen:

By application dated October 21, 1986, your Company requested a partial and permanent exemption from the annual fee requirements of 10 CFR 171 for your Yankee Plant. Specifically, you requested that the annual fee be reduced from $950,000 per year to $50,000 per year. In your appli-cation, you stated that the Yankee Plant is the oldest and one of the smallest concercial nuclear power plants with a generating capacity of 175 MWe. It is your conclusion that the impact of the annual fees on

" Yankee power costs will be approximately six times as great as it will be for a typical large, current vintage plant" and this is not reasonable for a small reactor such as yours.

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 Yankee Plant. The

$950,000 annual fee has been reduced to $183,000. 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) thermal MW power rating (this adjustment approach could only be considered because it had been determined that the Yankee Plant met the intent of 10 CFR 171.11), (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 itens 1 and 2 were averaged to determine an equitable and fair adjustment of $183,000 for the Yankee Plant.

Since your Company has made the first FY 1987 quarterly payment of

$237,500 and your annual fee for FY 1987 has been reduced to $183,000, we are taking the necessary steps to refund the sum of $54,500 to you by electronic transfer. We plan to complete this wire transfer within a week af ter your receipt of this letter.

8704200156 070415 PDR ADOCK 05000029 P PDR

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Yankee Atomic Electric Company 2 1

1 If there are questions regarding this matter, contact Mr.

Ronald M.'Scroggins on 301/492-4750.

Sincerely,

Ori<j aad by V. MJs Victor Stello, Jr. .

Executive Director for Operations j

Enclosure:

. Computation of Proposed

. Adjusted Annual Fees J

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Enclosure COMPUTATION OF PROPOSED ADJUSTED ANNUAL FEE TO BE ASSESSED USING THE AVERAGE OF TWO METHODS SHOWN BELOW1/

Yarkee Rowe Methods Used to Determine (sdjusted Fee:

1. Thermal Megawatt 600 MWt Rating Ratio 2671 MWt Plant / Average Plant U $211,000

2. Comparable inpact of $156,000 Annual Fee on Plant Kilowatt hour costsy  ;

3. Proposed Adjusted Annual $183,000 Fee - Average of methods 1 and 2

(% of Unadjusted Annual Fee) (19%)

Other Items For Comparison:

Increaseinmillrateb/ 1 mill per KWh Renaining years of 14/40 operation 35%

E nce 0 the determination is made that a partial exemption, in'the form of an adjusted fee, is appropriate and af ter applying the factors in 10 CFR 171.11, several possible nethods 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. l 2/Under this nethod, the adjusted fee is detemined by multiplying the unadjusted annual fee ($940,000) by the thermal megawatt rating of the plant divided by ,

the average thennal megawatt rating of the 101 licensed plants (2671 Mwt). l FUnderthismethod,theunadjustedannualfee($940,000) is adjusted such that the incremental kilowatt-heur costs for the plant are similar to the incremental i costs for larger nodern plants. l Ue Thamount of increase if the 10 CFR 171 annual fee of $950,000 were to be used.