ML20235K052

Requests Partial Exemption from FY88 Annual Fee,Per 10CFR171.11 to Avoid Increased Cost of Producing Electricity

ML20235K052
Person / Time
Site:	Yankee Rowe
Issue date:	09/16/1987
From:	Soucy A YANKEE ATOMIC ELECTRIC CO.
To:	Stello V NRC OFFICE OF THE EXECUTIVE DIRECTOR FOR OPERATIONS (EDO)
References
NUDOCS 8710020217
Download: ML20235K052 (2)

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%71 worcester Road Framinghorn Massachusetts 01101 w_ ,

A.R.Soucy September 16, 1987 eAA:2e"I:e"Eee.

Mr. Victor Stello, Jr.

Executive Director for Operations U.S. Nuclear ~ Regulatory Commission Washington, DC 20555 7, c5 Re: Fiscal Year 1988, Applica ion F6r Psrtial Exemption From 10 C.F.R. Part 171 Annual Fee, Yankee Atomic Electric Company,E, Docket No. 50-29 License No. DPR-3 l

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Dear Mr. Stello:

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i l Pursuant to section 171.11 of the Commission's regulations

( (10 C.F.R.), Yankee Atomic Electric Company (" Yankee") requests l for fiscal year 1988 a partial exemption from the annual fee imposed uitder section 171.15 (notice of the fiscal year 1988 fee, $936,000, was recently published, see 52 Fed. Reg. 32626, August 28, 1987). The Commission granted Yankee a partial exemption from the Part 171 annual fee for fiscal year 1987.

Copies of the Commission's April 15, 1987 letter granting the exemption, as well as Yankee's October 22, 1986 exemption application, are attached (Attachments A and B, respectively).

This application for a partial exemption from the FY 1988 Part 171 fee incorporates by reference Yankee's' application for FY 1987 (NRC staff have advised that this is appropriate in view of the absence of any significant change in the factual bases underlying the earlier application). Indeed, each of the matters presented in support of the FY 1987 application are equally true today and an exemption from the FY 1988 fee is again fully justified. Thus, the Yankee plant remains the i

oldest and one of the smallest commercial nuclear power reactors in the United States. Yankee's operating license expires in ten years, and the power contracts under which Yankee sells all of the Yankee plant's energy production to the 10 New England utilities who are Yankee's sole shareholders expire in only four years (see Attachment B, pp. 2-3, n.2).y

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1/ The enclosure to the Commission's April 15, 1987 letter granting Yankee a partial exemption from the FY 1987 annual fee incorrectly stated the Yankee plant's remaining life as 14 years. The correct period, at that time, was 11 years and is now 10 yearx, as indicated above.

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1 Mr. Victor Stello, Jr.

September 16, 1987 Page Two As explained in Yankee's previous exemption application, q payment of the full Part 171 fee for FY 1988, $936,000, would  ;

have a severe impact on Yankee: Yankee's cost to produce electric power would increase by nearly 1 mill per kilowatt. hour (KWH).

That represents an increase approximately six times greater than the increase for a typical large, current vintage plant.

Yankee's overall cost of power production, approximately 4 cents per KWH, is already considerably higher tgan the 3 cents per KWH level at many New England power plants .

In view of these matters, and each of the points discussed in Yankee's FY 1987 exemption application, Yankee requests )

a partial exemption from the Part 171 annual fee for FY 1988.

Although Yankee continues to believe that a fee such as that suggested in Yankee's previous application is appropriate (see Attachment B, pp. 6-7), Yankee requests an exemption for FY 1988 consistent with the exemption granted for FY 1987. Yankee's ,

FY 1987 fee was $183,000 (19 percent of the unadjusted annual ]

fee). On that basis, Yankee's fee for FY 1988 should be $178,000 j (19 percent of $936,000). J l

If any additional information is needed regarding this {

application, please ca31 me. Also, four extra copies of this j application and the accompanying attachments are enclosed for j the Commission's use. We ask that the one additional. copy l enclosed be stamped received by the Commission and returned l to our messenger. l l

Very truly yours, 1 A. R. Soucy 3 Treasurer ARS/kg Enclosure By Hand Copy to Mr. C. James Holloway 2/ Yankee's actual production cost for the first six months of 1987 was 4.2 cents per KWH. Yankee estimates that that cost will range between 4.3 and 3.5 cents per KWH during the 1987-89 period and average 4.0 cents per KWH for the same period.

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