ML20212P940

Recommends Util Be Granted two-thirds Reduction in Annual Fee,Based on Reactor Size,Per 870206 Request & Licensee 870121 Application for Partial Exemption from Annual Fee Provisions of 10CFR171

ML20212P940
Person / Time
Site:	Fort Saint Vrain
Issue date:	03/10/1987
From:	Berkow H Office of Nuclear Reactor Regulation
To:	Holloway C NRC OFFICE OF RESOURCE MANAGEMENT (ORM)
References
NUDOCS 8703160369
Download: ML20212P940 (3)

Text

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,s. 'g NUCLEAR REGULATORY COMMISSION W ASHINGTON, D. C. 20555 j

k f March 10, 1987 Docket No. 50-267 PEMORANDUM FOR: C. James Holloway, Jr., Chief License Fee Panagement Branch, RM/A FROM: Herbert N. Berkow, Director Standardization and Special Projects Directorate Division of PWR Licensing-B, NRR

SUBJECT:

RE0 VEST FOR EXEMPTION FROM ANNUAL FEE PROVISIONS OF 10 CFR PART 171 BY PUBLIC SERVICE COMPANY OF COLORADO (PSC) FOR FORT ST. VRAIN

Reference:

1) Femorandum dated February 6, 1987, from C. J. Holloway to H. N. Berkow, et al.

2) PSC letter dated January 21,1987(P-87031)

In response to your request, Reference 1, we have examined the licensee's bases for partial exemption from the fee provisions of 10 CFR Part 171. The essence of PSC's argument is that the annual fees for Fort St. Vrain should be reduced based on the size of the reactor, and other relevant matters, as allowed under 10 CFR 171.11. Our discussion of these factors follows.

Size of Reactor - Fort St. Vrain's ability to produce offsetting revenue is clearly limited by its size. Since the Comission provided for this factor to be considered in the Resolution of-Coments (Item 6), we believe this portion of PSC's request should be granted.

Any Other Relevant Matter Which the Licensee Believes Justifies the Reduction of Annual Fee - PSC's arguments concerning further reduction of fee due to the irrelevance of certain NRC activities to Fort St. Vrain are hard to follow.

First, the breakdown of costs used by the Comission as the basis of the I annual fee is presented in Comment No. 4 of the Resolution of Coments in the l Federal Register Notice. The budget analysis presented by PSC appears to use a different set of cost figures, and hence, draws different conclusions than might be drawn from the NRC basis. If PSC wishes to pursue this issue, they should use the NRC's basis for their analysis.

Furthermore, PSC's main concern relates to the non-applicable portions of the budgets for Research and Nuclear Reactor Regulation. The Office of Nuclear Regulatory Research should coment on PSC's analysis of their budget. PSC's

' analysis relating to the Office of Nuclear Reactor Regulation budget is flawed because it does not use the correct basis, as noted above.

l CONTACT:

K. Heitner, X28205 8703160369 870310 PDR ADOCK 05000267 P PDR l

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/ y PSC attributes certain iter.s to the NRC allocation, such as Operator Licensing, which are specifically excluded in the Background discussion of the rule. The basis for exclusion of other costs is not clearly stated in the PSC analysis. If PSC wishes to pursue this approach for a further reduction in fees, they should provide a correct and more soundly justified analysis.

Our recommendation is that PSC be granted a two-thirds reduction in the arnual fee, based on reactor size. Any further reductions should be based on a new exemption request.

L Herbert N. Berkow, Director Standardization and Special Projects Directorate Division of PWR Licensing-8, NRR l

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I March 10, 1987 PSC attributes certain items to the NRC allocation, such as Operator Licensing, which are specifically excluded in the Background discussion of the rule. The basis for exclusion of other costs is not clearly stated in the PSC analysis. If PSC wishes to pursue this approach for a further reduction in fees, they should provide a correct and more soundly justified analysis.

Our recommendation is that PSC be granted a two-thirds reduction in the annual fee, based on reactor size. Any further reductions should be based on a new exemption request.

original signed by Herbert N. Berkow, Director Standardization and Special Projects Directorate Division of PWR Licensing-8, NRR DISTRIBUTION:

Jockets File; NRC PDR Local PDR PNoonan XHeitner 0 Lynch HEerkow

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k Pt c anan PBSS /h KHeitner:cw PB 5 0 Lynch PFSh HBedlow 03/4 /87 03/9 /87 03//0/87 03//a/87