ML20245F586

Comments on Supplemental Decommissioning Funding Financial Assurance Arrangements Presented at 890420 Meeting in Rockville,Md.Listed Info Should Be Included in Formal Response to Comments

ML20245F586
Person / Time
Site:	Seabrook
Issue date:	04/25/1989
From:	Nerses V Office of Nuclear Reactor Regulation
To:	Ellen Brown PUBLIC SERVICE CO. OF NEW HAMPSHIRE
References
CLI-88-10, NUDOCS 8905020433
Download: ML20245F586 (4)

Text

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d ka UNITED STATES NUCLEAR REGULATORY COMMISSION j wAsmNoTow, o. c. 2oses y\, ,ob April 25, 1989 Docket No. 50-443

, Mr. Edward Brown President & Chief Executive Officer  !

New Hampshire Yankee Division Public Service Company of New Hampshire Post Office Box 300 Seabrook, New Hampshire 03874

SUBJECT:

SUPPLEMENTAL DECOMMISSIONING FUNDING FINANCIAL ASSURANCE ARRANGEMENTS The following are the NRC . Staff coments concerning the supplemental financial assurance arrangements presented at the meeting held in Rockville, Maryland on April 20, 1989.

1) We understand that you propose to provide supplemental financial assurance  !

in the form of a trust fund that would satisfy the requirement of 10 CFR j 50.75(e)(1)(i), consisting of prepaid zero coupon Treasury bonds maturing on a schedule that would make up the difference between the funds supplied by the Surety Bond and the amounts required to cover decommissioning costs items set forth in CLI 88-10 plus an appropriate allowance for inflation (discussed below). This would be acceptable.

2) Your proposed use of an inflation factor of 3.5% derived from estimates from the Council of Economic Advisors and OMB is acceptable.

3) Your proposal to take into account and take credit for the double counting of the fuel storage costs during the decommissioning period is acceptable.

4) Your proposal to provide for fuel storage costs totaling $35,759,880 not including inflation and contingency is acceptable.

5) The nroposal discussed in the meeting (Transcript of April 20, 1989 meeting pp. 40 - 42) which takes into account the inflation factor for the decommissioning cost, the fuel storage cost and the cleanup costs in tha 28th year and takes into account the inflation factor on the 25% contingency on these costs is a more complete treatment of the inflation factor and is acceptable.  !

6) Whether the funds set aside for fuel disposal costs ought to have an inflation l factor applied to it, should be har;dled in acccrdance with your discussions with j DOE concerning fuel disposal costs under your contrat.t with DOE. Your disbursement (

schedule should also take into account your discussions with DOE with respect to the timing of payments for fuel disposal coscs. In any event, in accordance with CLI 88-10 the funds set aside for this purpose should not be less than l

$13 million.

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Mr. Edward Brown April 25,1989 In your formal response to our comments, please assure that your submission includes:

1) Updated tables of the Annual Statement of Application and Source of Funds and the Statement of Application and Source of Funds similar to those provided at the April 20 meeting; however, in year 5 please separately break out the periods covering months 49-52 and months 53-60.

2) An identification of the schedule of bonds proposed in your analysis, along with their purchase price, maturity date, value at maturity, and effective annual yield. Please provide evidence that your assumed yields are consistent with current market conditions.

3) A copy of your correspondence or a summary of your communications with DOE concerning fuel disposal costs discussed in item 6 above and a copy of your DOE contract.

4) A copy of the trust agreement established to cover the supplement trust or, if it has not yet been established, a copy of the trust agreement you propose.

Please contact Victor Nerses, the Seabrook Project Manager (301-492-1441), if you have any questions.

Sincerely, Original Signed by:

Victor Nerses, Project Manager Project Directorate I-3 Division of Reactor Projects I/II cc: See next page DISTRIBUTION: DocketLFile, NRC& Local PDRs, PDI-3 r/f, SVarga, BBoger, MRushbrook, RWessman,BGrimes,Edordan,ACRS(10),JWiggins,Rgn.I,JPartlow,VNerses

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1. w a 0FFICIAL RECORD COPY

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,. ' Edward A. Brown Seabrook Nuclear Power Station j Public Service Company of New Hampshire cc

i Thomas Dignan Esq. E. Tupper Kinder, Esq.

John A. Ritscher, Esq. G. Dana Bisbee, Esq. 1 Ropes and Gray Assistant Attorney General 225 Franklin Street Office of Attorney General )l Boston, Massachusetts 02110 208 State House Annex J Concord, New Hampshire 03301 i Mr. Bruce 8. B/kley, Project Manager '

Public Service Company of New Hampshire Resident Inspector Post Office Box 330 US Nuclear Regulatory Ccamission Manchester, New Hampshire 03105 Post Office Box 1149 3 Seabrook, New Hampshire 03874 1 Dr. Mauray Tye, President I Sun Valley Association Mr. A. M. Ebner, Project Manager i 209 Summer Street United Engineers & Constructors -

Haverhill, Massachusetts 01830 Post Office Box 8223 Philadelphia, Pennsylvania 19101 Robert Backus, Esq.

Backus, Meyer and Solomon Steven Oleskey, Esq.

116 Lowell Street Office of the Attorney General Manchester, New Hampshire 03106 One Ashburton Place P.O. Box 330 Diane Curran, Esq. Boston, Massachusetts 02108 Harmon and Weiss 2001 S Street, NW Carol S. Sneider, Esq.

Suite 430 Office of the Assistant Attorney General Washington, D.C. 20009 One Ashburton Place P.O. Box 330 Philip Ahren, Esq. Boston, Massachusetts 02108 Assistant Attorney General State House, Station #6 D. Pierre G. Cameron, Jr. , Esq.

Augusta, Maine 04333 General Counsel Public Service Company of New Hampshire Mr. Edward A. Brown, President Manchester, New Hampshire 03105 and Chief Executive Officer New Hampshire Yankee Division Mr. James M. Peschel Public Service Company of Public Service Company of New Hamsphire New Hampshire P.O. Box 300 Post Office Fox 300 Seabrook, New Hampshire 03874 l Seabrook, New Hampshire 03074 Seacoast Anti-Pollution League Regional Administrator, Region !

5 Market Street U.S. Nuclear Regulatory Commission Portsmouth, New Hampshire 03801 475 Allendale Road 25 Maplewood Ave.

King of Prussia, Pennsylvania 19406 Ms. Diana P. Randall Ashod N. Amirian, Esq.

p 70 Collins Street Town Counsel for Merrimac j l Seabrook, New Hampshire 03874 376 Main Street Haverhill, Massachusetts 08130 Mr. T. Feigenbcum .

Public Service Company of Po O N b ! 330 Seabrook, New Hampshire 03874

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, -j Edward A. Brown, Public Stabrook Nuclear Power Station I Service Company of.New Hampshire l

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Mr. Calvin A'. Canney, City Manager Mr. Alfred V. Sargent, City Hall Chairman 126 Daniel Street Board of Selectmen Portsmouth, New Hampshire 03801 - Town of Salisbury, MA 01950 Board of Selectmen Senator Gordon J. Humphrey RFD Dalton Road ATTN: Tom Burack Brentwood, New Hampshire 03833 531 Hart Senate Office Building U.S. Senate Ms. Suzanne Breiseth, Washington, D.C. 20510 Board of Selectmen Town of Hampton Falls

~ Drinkwater Road Mr. Owen B. Durgin, Chaiman

.Hampton Falls, New Hampshire 03844 Durham Board of Selectmen  !

Town of Durham '

Mr. Guy Chichester, Chairman Durham, New Hampshire 03824 Rye Nuclear Intervention Connittee Jane Spector c/o Rye Town Hall Federal' Energy Regulatory 10 Central Road Commission ,

Rye, New Hampshire 03870 825 North Capital Street, N.E.

Room 8105 Chairman, Board of Selectmen Washington D. C. 20426' RFD 2 South Hampton, New Hampshire 03827 Mr. R. Sweeney .

R. Scott Hill - Whilton Three Metro Center t Lagoulis, Clark, Hill-Whilton Suite 610-A McGuire Bethesda, Maryland 20814 79 State Street ..

Newburyport, Ma. 01950 Mr. Richard Strome, Director Ms. R. Cashman, Chairman New Hampshire Office of Emergency Board of Selectmen Management Town of Amesbury State Office Park South Town Hall 107 Pleasant Street Amesbury, Massachusetts 01913 Concord, New Hampshire 03301 Adjudicatory File (2)

Honorable Peter J. Matthews Atomic Safety and Licensing Board Mayor, City of Newburyport Panel Docket City Hall U.S. Nuclear Regulatory Commission Newburyport, Massachusetts 01950 Washington, D.C. 20555 Mr. Donald E. Chick, Town Manager Congressman Nicholas Mavroules Town of Exeter 70 Washington Street 10 Front Street Salem, Massachusetts 01970 Exeter, New Hampshire 03823 Mr. G. Thomas Mr. John C. Duffett Public Service Company of President and Chief Executive Officer New Hampshire Public Service Company of New Hampshire Post Office Box 330 1000 Elm St., P.O. Box 330 Seabrook, New Hampshire 03874 Manchester, New Hampshire 03105

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