ML20217N461

Forwards Revised Pages 11,14 & 71 of Rept & Order Dtd 990608.Revs Are Textual Changes to Clarify & Confirm Action Taken by Nuclear Decommissioning Financing Committee

ML20217N461
Person / Time
Site:	Seabrook
Issue date:	10/22/1999
From:	Kalinski A NEW HAMPSHIRE, STATE OF
To:	External (Affiliation Not Assigned)
References
NUDOCS 9910290040
Download: ML20217N461 (4)

Text

-

STATE OF NEW HAMPSHIRE p

e.

' DOUGLAS L. PATCH GEORGIE A. THOMAS CHAIRMAN E

g SECRETARY se*

NUCLEAR DECOMMISSIONING FINANCING COMMITTEE TDD Access: Relay NH 1-800-735-2964 c/o Public Utilities Commission 8 Old Suncook Road Tel. (603) 271-2442 Concord, N.H. 03301-7319 FAX No. 2713878 October 22,1999 To:

Members of the Nuclear Decommissioning Financing Committee and Service List Re:

Report and Orderin NDFC 98-1 Fmm:

Alexander J. Kalinski, Special Counsel to Committee Enclosed are REVISED pages 11,14 and 71in the Repon and Order dated June 8,1999 to be substituted for those previously forwarded. The revisions were textual changes to clarify and confirm the action taken by the Committee when it approved the Report and Order on June 8,1999. -NAESCO and its counsel, Attorney Edward A.

Haffer, after further review of the Report and Order, requested these revisions to conform the Report and Order to the action taken by the Committee at the hearing on June 8,1999.

If any party on the service list has any comments or questions, please contact the

{

undersigned and Chainnan Douglas L. Patch.

\\'

r y, Ale anderJ.

in-cc:

Sandra Gavutis i

Executive Director i

C-10 Research & Education Foundation, Inc.

~ 44 Merrimac Street Newburyport, MA 01950 j

Tom Donaldson Steve Jusseaume Writer-Editor-Consultant Seacoast Newspapers D)

P.O. Box 883 32 Depot Square 0

Hampton, N.H. 03842-0008 Hampton, N.H. 03842

(

(Vrith en:losures)

)

9910290040 991022 PDR ADOCK 05000443 p

PDR i

l

t e

~ issue. However, based on a careful assessment of the evidence before it, the Committee blievEs that its present assumption is reasonable. No inference should be drawn, however, l

t 1

i that the assumption on life expectancy adopted in the accompanying Order is likely, or unlikely, to be adopted again iri future proceedings. The Committee anticipates that the funding approach ordered out of this proceeding will be revisited in 2000 to ensure that the approach continues to make sense in terms of NRC regulations, tax laws, state and federal l

law, and New Hampshire restructuring decisions, i

l

-2.

The most appropriate way to decommission the plant.

. The Committee finds that prompt dismantlement and removal ("DECON')is the likhliest scenario and the most cost-effective and efficient way for the purpose of determining the funding amount and that it continues to be the most reasonable attemative.

i i

3.

. The funding method.

l The Committee finds that the funding method will be " escalated funding", but

. subject to the following provisions:

i-I A. The Committee also fm' ds that the funding schedule as presented by L

' NAESCO in Exhibit 1 [i.e., the funding schedule contained in Hearing Exhibit 1, the l

March '1998 Decommissioning Update] shall be revised to conform to the October 1,2015.

. date as the end of the energy producing life of the plant, as determined by the Committee in 4

- paragraph I above, except that the total contributions for 1999 shall be at least $17.7 million and the sum cf the contributions for 1999 and 2000 shall be at least $36.1 million (with each Joint Owner's contribution ' correspondingly adjusted).

detennining the funding amount and continues to be the most reasonable alternative.

3. The funding method will be " escalated funding" subject to the following provisions:

1 A. The funding schedule as presented by NAESCO IN Exhibit 1 [i.e., the funding schedule contained in Hearing Edibit 1, the March 1998 Decommissioning Update], shall be revised to conform to the October 1,2015 date in paragraph 1. above, except that the total contributions for 1999 shall be at least $17.7 million and the sum of the contributions for 1999 and 2000 shall be at least $36.1 million (with each Joint Owner's i

contribution correspondingly adjusted).

j i

B. The Committee intends t' apen a proceeding in 2000 to review the funding schedule for the period following 2000 in the light of circumstances at that time, i

and determine whether, and to what extent, the amended funding schedule set should be modified.

4. There is adequate assurance at the time of the hearings in this proceeding for

' the time being of the collectibility of the Deconunissioning Fund from each Joint Owner in the immediate future.

4.'1 At the time of the hearings in this proceeding, all of the Joint Owners have met and continue to meet monthly funding obligations and are current in their funding l

CONCLUSION

Under the provisions of RSA 162-F:14-26, the Committee has two fundamental issues to decide in this proceeding:

1.

The undated amount of the Nuclear Decommissioning Financing Fund to be established for Seabrook I Nuclear Station.

2. The amount of the regular monthly schedule for payments into the Nuclear Decommissioning Financing Fund to reach the updated amount established.

AMOUNT OFTHE FUND The Committee, for the purposes of this proceeding and with the limitations set forth in its Report, finds and approves as reasonable and proper, the required amount of the Fund to be $513,000,000 in 1998 dollars.

FUNDING SCHEDULE A. The Committee also finds that the funding schedule presented by NAESCO in Exhibit 1 [i.e., the funding schedule contained in Hearing Exhibit 1, the March 1998 Decommissioning Update] shall be revised to confomi to the October 1,2015 date as the likely end of the energy producing life of the plant, except that the total contributions for 1999 shall be at least $17.7 million and the sum of the contributions for 1999 and 2000 shall be at least $36.1 million (with each Joint Owner's contribution correspondingly adjusted).

B. The Committee recognizes, as set forth by counsel for New England Electric, Carlos Gavilondo, at the hearing on June 8,1999 that, to the extent that Montaup Electric Company prefunds the Nuclear Decommissioning Financing fund, the proportional contilbutions of the other Joint Owners are not going to be reduced as a result of such prefunding.