ML20209G677
| ML20209G677 | |
| Person / Time | |
|---|---|
| Site: | Palo Verde  |
| Issue date: | 07/08/1999 |
| From: | James M. Levine ARIZONA PUBLIC SERVICE CO. (FORMERLY ARIZONA NUCLEAR |
| To: | NRC OFFICE OF INFORMATION RESOURCES MANAGEMENT (IRM) |
| References | |
| 102-04306-JML-S, 102-4306-JML-S, NUDOCS 9907190223 | |
| Download: ML20209G677 (17) | |
Text
James M. a_evine TEL (602)393-5300 Mad Stat:on 7602 Palo Verde Nuclear Senior Vice President FAX (602)393-6077 P O Box 52034 Generating Station Nuclear Phoer.x, AZ 85072-2034 102-04306-JMUSAB/RKB July 8,1999 U. S. Nuclear Regulatory Comm.ission ATTN: Document Control Desk Mail Station P1-37 l
Washington, DC 20555 l
Dear Sirs:
Reference:
APS Letter No. 102-04266-JMUSAB/RKB, dated March 30,1999, from J. M. Levine, APS, to NRC, " Status of Decommissioning Funding"
Subject:
Palo Verde Nuclear Generating Station (PVNGS)
Units 1,2, and 3 Docket Nos. STN 50-528/529/530 Status of Decommissioning Funding - Supplement t
In the above referenced letter, Arizona Public Service Company (APS) submitted to the Commission the status of PVNGS Units 1, 2 and 3 decommissioning funding in accordance with the requirements of 10 CFR 50.75(f)(1).
The supplemental information provided herein is to confirm that the decommissioning funding plans of Public Service Company of New Mexico for its interests in Palo Verde Nuclear Generating Station have been reviewed by the New Mexico Public Regulation Commission, formerly the New Mexico Public Utility Commission.
Copies of the " Final Order Approving Recommended Decision" and the " Recommended Decision of the Hearing Examiner" in Case No. 2742 are enclosed.
If you have any questions, please contact Scott A. Bauer at (623) 393-5978.
This letter does not make any commitments to the NRC.
Sincerely, l
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k JMUSAB/RKB/rlh i
Enclosures 1
9907190223 990708 PDR ADOCK 05000528 l
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.U. 'S. Nucirr Regulatory Commission ATTN: Document Control Desk Status of Decommissioning Funding for PVNGS Units 1,2, and 3 Page 2
'cc:
E. W. Merschoff w/ attachments M. B. Fields w/o attachments J. H. Moorman
' w/ attachments A. V. Godwin [ARRA) w/o attachments R. S. Wood w/ attachments M. A. Dusaniwskyj w/ attachments
Final Order Approving Recommended Decision J
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BEFORE THF NEW MEXICO PUBLIC UTILITY COMMISSION t
IN THE MA1 itR OF PUBLIC SERVICE COMPANY
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OF NEW MEXICO'S COMPLIANCE FILING
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EXPLAINING PNM'S METHOD OF FUNDING
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NUCLEAR DECOMMISSIONING TRUSTS FOR
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Case No. 2742 PNM'S INTEREST IN THE PALO VERDE NUCLEAR
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GENERATING STATION,
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PUBLIC SERVICE COMPANY OF NEW MEXICO,
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Applicant.
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FINAL ORDER APPROVING RECOMMENDED DECISION THIS MATTER comes before the New Mexico Public Utility Commission 1
("Commissien") upon the Recommended Decision of the Hearing Examiner, issued by William
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J. Hemnann on September 15,1997. The Commission having considered that Recommended Decision and the record in this case, and being fully informed in the premises, THE COMMISSION FINDS AND CONCLUDES:
1.
It has jurisdiction over the parties and the subject matter in this case, and the Recommended Decision of the Hearing Examiner is well taken and should be adopted.
2.
The findings and conclusions contained in the Recommended Decision of the Hearing Examiner, attached hereto as Exhibit 1, are incorporated by reference as if fully set forth herein,'and are ADOPTED, APPROVED and ACCEPTED as Findings and Conclusions of the Commission.
RECENED OCT 01 is97 D.ZIMMERMANN
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IT IS THEREFORE ORDERED:
A.
The Orders contained in the Recommended Decision of the Hearing Examiner as l
set forth in Exhibit 1, attached hereto, are incorporated by reference as if fully set forth herein and are ADOPTED, APPROVED and ACCEPTED as Orders of the Commission.
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B.
The Recommended Decision of the Hearing Examiner is ADOPTED, APPROVED and ACCEPTED in its entirety.
C.
This Order is effective immediately.
D.
A copy of this Order shall be served on all parties to this case or their counsel.
l E.
This Docket is closed.
ISSUED under the Seal of the Commission at Santa Fe, New Mexico, this 30th day of September,1997.
NEW MEXICO PUBLIC UTILITY COMMISSION I
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\\f-fiM SHIRLEY, CHA 41AN 5
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's BEATRIZ RiVERA, COMMISSIONER j
MUNTE SHRIVER, COMMISSIONER l
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FINAL ORDER APPROVING RECO3131 ENDED DECISION Case No. 2742 2
f BEFORE THE NEW MEXICO PUBLIC UTILITY COMMISSION IN THE MATTER OF PUBLIC SERVICE COMPANY
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OF NEW MEXICO'S COMPLIANCE FILING
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EXPLAINING PNM'S METHOD OF FUNDING
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NUCLEAR DECOMMISSIONING TRUSTS FOR
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Case No. 2742 PNM'S INTEREST IN THE PALO VERDE NUCLEAR
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DENERATING STATION,
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PUBLIC SERVICE COMPANY OF NEW MEXICO,
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Applicant.
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CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and correct copy of the foregoing Final Order i
Approving Recommended Decision, issued September 30, 1997, was mailed first-class,
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postage paid, to each of the following persons:
Steven S. Michel, Esq.
Charles F. Noble, Esq.
- 368 Hillside Avenue Assistant Attorney General Santa Fe,NM 87501 Post Office Drawer 1508 l
Santa Fe, NM 87504-1508 Richard B. Cole, Esq.
David C. Zimmerman, Esq.
Kelcher & McLeod, P.A.
Public Service Company ofNew Mexico Post Office Drawer AA Alvarado Square - MS 0806 Albuquerque, NM 87103-1626 Albuquerque,NM 87158 i
and hand-delivered to:
Cydney Beadles-Salazar, Esq.
ChiefStaffCounsel NM Public Utility Cormnission 224 East Palace Avenue.
Santa Fe,NM-87501-2013 4
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s DATED this 30* day of September,1997.
NEW MEXICO PUBLIC UTILITY COMMISSION Anastasia S. Stevens Commission Counsel
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Certificate of Service 2
Case No. 2742
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i Recommended Decision of the Hearing Examiner
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4' BEFORE THE NEW MEXICO PUBLIC UTILITY COMMISSION
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IN THE MATTER OF PUBLIC SERVICE COMPANY
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OF NEW MEXICO'S COMPLIANCE FILING
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EXPLAINING PNM'S METHOD OF FUNDING
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NUCLEAR DECOMMISSIONING TRUSTS FOR
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Case No. 2742 PNM'S INTEREST IN THE PALO VERDE NUCLEAR
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GENERATING STATION,
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~ PUBLIC SERVICE COMPANY OF NEW MEXICO,
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Appilcant.
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J RECOMMENDED DECISION OF THE HEARING EXAMINER COMES NOW William J. Herrmann, Hearing Examiner in this case, to present the following Recommended Decision to the New Mexico Public Utility Commission
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("NMPUC" or the
- Commission").
STATEMENT OF THE CASE On October 24,1996, Public Service Company of New Mexico ("PNM" or the
- Company") filed an Application (the " Application") seeking a determination from the Commission that PNM has complied with the filing requirement.s set forth in the
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Commission's Final Order Approving Recommended Decision (the
- Final Order") in Case No. 2674 (" Case 2674") which related to PNM's supplemental funding plan for its 3
decommissioning costs concerning PNM's' participation in the Palo Verde Nuclear Generating Station ("PVNGS"),
l EXHIBIT 1
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PNM fiied the testimony of Edmond J. Jeung in support of the Application.
On December 30, 1996, public ' notice was provided by publication in a newspaper of general circulation in every country within the State of New Mexico and hence in each county where PNM provides service.
The Hearing Examiner issued a Procedural Order on December 20,1995, and an Order Setting Pre-hearing Conference.on February 13,1997.
Motions for Leave to intervene were filed by the New Mexico industrial Energy Consumer ("NMIEC") and the Attorney General of the State of New Mexico (" Attorney General") on January 3 and January 10,1997, respectively.
A Pre hearing Conference was held on February 25,1997.
The Hearing Examiner issued a Second Procedural Order on February 28,1997, scheduling dates for, among other things, direct, reply and supplemental testimony and
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a hearing.
PNM filed the Supplemental Testimony of Edmond J. Jeung on March 10,1997, l
and Commission Staff filed an affidavit of Anthony R. Sisernos on March 14,1997.
On April 8,1997, PNM filed its Motion to issue a Recommended Decision Based on the Uncontested Pleadings and Pre filed Testimonies of Record, along with its Proposed Recommended Decision. No replies to PNM's proposed Recommended Decision were filed.
OtSCUSSION PNM seeks a determination that PNM has complied with the filing requirements set forth in the' Final Order which ordered PNM to file an application in which it RECOt/.rt. ENDED DECISION OF
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.THE HEARING EXAMINER Case No.2742 2
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- , proposes a method and explains how it intends to remain fully funded whenever a revised study shows that PNM needs to increase the total value of its contributions to be fully funded for its decommissioning funding requirements
- for PVNGS. (Application, p.2).
In Case 2674, PNM sought Commission approvalto establish a qualified nuclear decommissioning trust for the purpose of supplementing existing funcing to finance PNM's 10.2 percent share of the projected costs of decommissioning PVNGS Units 1 and 2, and to modify the annual reporting requirements establish ~ed by the NMPUC in Case No. 2004 (" Case 2004"). (Direct Testimony of Edmond J. Jeung, pp.2-3). The Commission approved PNM's application to estabhish a qualified nuclear decommissioning trust and P.NM's modifbations to the annual reporting requirements estabiished by the NMPUC in Case 2004. L4, p.3. In that Final Order, the Commission also ordered that PNM file by October 24,1996, an application in which it proposed a method and explained how it intended to remain fully funded whenever a revised study showed that PNM needed to increase the value of its contributions to be fully funded for its decommissioning funding requirements. (Application, p.2).
PNM's methodology for remaining fully funded is governed by the provisions of the Termination Funding Committee ("TFC") Manual (the
- Manual") which was established in connection with an agreement between the parties (the " Participants") in the Arizona Nuclear Power Project, requiring each Participant to maintain an agreed upon level of funding for decommissioning.PVNGS. Units 1,2 and 3. (Application, p.2; Direct Testimony of Edmond J. Jeung, p.6).
RECOU.t/ ENDED DECISION OF
' } Case No.2742 -
THE HEARING EX.AMINER 3
Under the provisions of the-Manual, the agreed upon level of funding for decommissioning PVNGS Units 1,2 and 3 is based upon a triennial decommissioning
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cost study conducted by a qualified independent consultant. (Application, p.2; Direct Testimony of Edmond J. Jeung, p.9).
1 Utilizing the estimated decommissioning cost amount, each Participant derives two funding measures - the Committed Accumulations level and Funding Floor level.
The Committed Accumulations level is a series of dollar amounts a Participant has committed to accumulate in its decommissioning trust as of the end of the Annual
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1 Reporting Period. The Funding Floor is a series'of amounts below the Committed Accumulations level which defines the lower boundary of an area into which a Participant's Actual Accumulations can fall with no corrective action required of the Participant. (Application, p.3; Direct Testimony of Edmond J. Jeung, p.7).
The Manual specifies that PNM make Normal Annual _ Deposits into its decommissioning fund. Normal Annual Deposits are amounts designed to assure that Actual Accumulations at the end of the year are equalto or greater than its Committed Accumulations.
Actual Accumulations equal the value of the investments in the
. qualified and nonqualified trusts at the end of the' Annual Reporting Period. If the Participant's Actual Accumulations fall below the Funding Floor, the Participant is required to make Recovery Deposits and Correction Deposits. (Application, p.3; Direct Testimony of Edmond J. Jeung, p.9).
The Participants must make Recovery Deposits and Correction Deposits within the Recovery Period and. Correction Period, respectively. These periods of time vary RECOMf/. ENDED DECISION OF
'] THE HEARING EX.AMINER
/ Cass N:: 2742 4
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from several months to several years depending on the year in which the deficiency occurs. The periods of time under Recovery Periods and Correction Periods shorten as
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-the decommissioning date approaches. (Application, p.3; Direct Testimony of Edmond J. Jeung, pp.9-10).
If a Participant fails to make any required deposits and fails to appropriately cure the deficiency, the TFC may revoke the Participant's generation entitlement share.
(Application, p.4; Direct Testimony of Edmond J. Jeung, p.11).
PNM'is currently in compliance with the Manual.
PNh!'s funding obligation amount in the 1995 Annual Funding Status Report to the Project was $25.6 million for all three PVNG units.
PNM currently has approximately S25.6 million in its decommissioning trusts. (Direct Testimony of Edmond J. Jeung, p.5; Supplemental Testimony of Edmond J. Jeung, p.4).
PNM stated that it has abided and will continue to abide by the terms under the Manual to remain fully funded whenever a revised study shows that PNM needs to increase the total value of its contributions to be fully funded for its decommissioning i
funding rr ':irements. (Application, p.4).
The. Hearing Examiner recommends that the Commission.F i N D and C O N C L U D E as follows:
L1.
The Statement of the Case and Discussion contained in the Recommended Decision of the Hearing Examiner are incorporated by reference herein as Findings of Fact and Conclusions.of Law.
RECOT/.f,*. ENDED DECISION OF
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THE HEARING EXAMINER
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./ Case No. 2742 5
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PNM;is a public utility as defined in the Public Utility Act, NMSA 1978, Section 62 31, e_.t.see.
3.
The Commission has jurisdiction over the parties and the subject matter of
. this case.
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4.
In ecmpliance with the Final Order, PNM has' presented and explained, with the necessary information and documentation, its proposed method to remain fully funded whenever:a revised decommissioning cost study shows that PNM needs to increase the value of its contributions to be fully funded for its share of decommissioning costs at PVNGS.
. The Hearing Examiner recommends that the Commission O R D E R as follows:
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A.
PNM should continue to comply with the Manuars requirements so as to remain fully funded whenever a revised study shows that PNM needs to increase the total value of its contributions to be fully funded for its decommissioning funding requirements for PVNG.
B.
This Order is effective immediately.
C.
Copies 'of this Order shall be served on all parties to this case or their counsel.
D.
This Docket is closed.
RECOMMENDED DECISION OF THE HEARING EXAMINER U ' Case No.2742 6
l 1 S S U E D at Santa Fe, New Mexico this 15th day of September,1997.
NEW MEXICO PUBLIC UTILITY COMMISSION e is n = O L w WILLIAM J. HERRMANN Hearing Examiner i
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R ECOMMENDED DECISION OF
^). - THE HEARING EXAMINER Case No. 2742 7'
BEFORE THE NEW MEXfCO PUBLIC UTILITY Cor/ MISSION IN THE MATTER OF PUBLIC SERVIC5 COMPANY
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'OF NEW MEXICO'S COMPLIANCE Fl'.ING
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EXPLAINING PNM'S METHOD OF FUNDING
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NUCLEAR DECOMTAISSIONING TRUSTS FOR
)
Case No. 2742
, PNM'S INTEREST IN THE PALO VERDE NUCLEAR
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GENERATING STATION,
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PUBLIC SERVICE COMPANY OF NEW MEXICO,
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Applicant.
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I CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and correct copy of the foregoing Recommended Decision of the Hearing Examiner, issued September 15,1997, was l
mailed First Class, postage paid, to each of the following persons:
} 358 Hillside AvenueSteven S. Michel, Esq.
Charles F. Noble. Esq.
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Assistant Attorney General Santa Fe, NM B7501 Post Office Drawer 1508 Santa Fe, NM 87504-1508 Richard B. Cole, Esq.
David C. Zimmerman, Esq.
Keleher & McLeod, P.A.
Public Service Company of New Mexico Post Office Drawer AA Alvarado Square - MS 0S05 Albuquerque, NM B7103-1626 Albuquerque, NM 87158 and hand. delivered to:
e Cydney Beadles-Salazar, Esq.
Chief Staff Counsel
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NM Public Utility Commission 224 East Palace Avenue Santa Fe, NM B7501-2013 1
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b A T E D this 15th day of Septabmer,1997.
', s NEW MEXICO PUBL!C UTILITY COMMISSION
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WILLIAM J. HERRMANN Hearing Examiner WJH/es 1
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Case No.2742 2
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