ML20245K420
| ML20245K420 | |
| Person / Time | |
|---|---|
| Site: | Seabrook  |
| Issue date: | 08/07/1989 |
| From: | Feigenbaum T PUBLIC SERVICE CO. OF NEW HAMPSHIRE |
| To: | NRC OFFICE OF ADMINISTRATION (ADM) |
| References | |
| FRN-54FR25393, RTR-REGGD-01.XXX, RTR-REGGD-1.XXX, TASK-DG1003, TASK-RE 54FR25393-00019, 54FR25393-19, NYN-89101, NUDOCS 8908210010 | |
| Download: ML20245K420 (3) | |
Text
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United States Nuclear Regulatory Commission Washington, DC 20555 Attentions latory Publications Branch p
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Office of Administration and Resources Management
References:
Facility Operating License NPF-67, Docket No. 50-443
Subject:
Comments on Draft Regulatory Guide " Assuring the Availability of Funds for Decommissioning Nuclear Reactors" Gentlemen New Hampshire Yankee (NHY) appreciates the opportunity to comment on the draft Regulatory Guide entitled " Assuring the Availability of Funds for Decommissioning Nuclear Reactors". New Hampshire Yankee was established in 1984 as a division of the Public Service Company of New Hampshire to function as the managing agent for the Joint Owners of the Seabrook Project.
In its capacity as managing agent, NHY has participated in a proceeding before the State of New Hampshire's Nuclear Decommissioning Finance Committee as mandated by the New Hampshire statute pertaining to decommissioning of nuclear power plants. Typically, states in which nuclear power plants are located have established mechanisms to assure that funds will be available to decommission the plant (s) upon completion of its (their) operating life. New Hampshire Yankee herein offers general comments, all of which share the common theme that the NRC draft regulatory guide establishes guidance in certain areas which are within the jurisdiction of the states or federal ratesetting authorities.
New Hampshire Yankee offers its comments and recommendations on the following provisions of the draft regulatory guide.
Regulatory Position 2.2.5 (page 16)
Note: This paragraph is incorrectly numbered 2.4.5.
This Regulatory Position prescribes that " annual deposits in an internal sinking fund, including projected earnings, should be at least equal to the total amount remaining to be accumulated, divided by the remaining years of the license".
Comment / Recommendation:
New Hampshire Yankee believes that funding schedules should continue to be developed by the utilities and the ratesetting authorities and that the NRC could achieve its purpose of assuring the availability of decommissioning funds by including a general guideline that funding schedules not be excessively back-end loaded.
8908210010 890807
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New Hampshire Yankee Division of Public Service Company of New Hampshire MbC P.O. Box 300
- Seabrook, NH 03874
- Telephone (603) 474-9521 g
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United States Nuclear Regulatory Commission August 7, 1989 Attention: Regulatory Publications Branch Page 2 Regulatory Position 2.8.3 (page 19)
This Regulatory Position prescribes that " funds needed to complete decommissioning are to be placed in account segregated from licensee assets and outside of the licensee's administrative control".
Comment / Recommendations:
New Hampshire Yankee believes that the intent of this Regulatory Position is to assure that the decommissioning account (in trust).is insulated and protected in the event of a bankruptcy filing and otherwise not available to the utility for any reason other than that associated with the performance of decommissioning or the payment of expenses associated with the trust.
New Hampshire Yankee believes that the NRC's intent would be best served by adding a guideline to Regulatory Position 2.8.3, that the trust shall be structured in accordance with state laws so as to maintain the validity of the trust.
New Hampshire Yankee also recommends that Regulatory Position 2.8.3 be revised to clarify that'the utility is allowed to exercise administrative oversight responsibility over the trust, trustee, fund manager, investment guidelines etc., to the extent that the trust status is not jeopardized. Regulatory Position 2.8.3 should also be revised to provide for withdrawals paid directly to third parties or to the utility which are necessary to cover various expenses of the trust and to pay decommissioning expenses.
Appendix B 3.1 (page B-12)
This Appendix contains recommended wording for trust fund and standby I
trust agreements.
Comment / Recommendation:
)
Most nuclear utilities already have escrow or trust agreements in place.
These must, in many instances, have very specific state or regulatory language. New Hampshire Yankee believes that it is the NRC's intent that this Appendix is applicable to non-utility licensees. New Hampshire d
Yankee recommends that Appendix B 3.1 be revised to indicate that it is intended for use by non-utility licensees and that utility trust or escrow agreements shall be available for NRC review.
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United States Nuclear Regulatory Commission August 7, 1989 Attention Regulatory Publications Branch Page 3 If NHY can provide any further assistance in the development of this Regulatory Guide, please contact Mr. Allen L. Legendre at (603) 474-9521 i
extension 2373.
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Very uly your.
.i M/ h uk/
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Ted C. Fei ba l
Senior Vice Pres dent and Chief Operating Officer I
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