ML20247F727

Statement from State of VT Re Rate Treatment of Dry Cask Storage.* State of VT Can Make No Evaluation at Present Time Re Whether Decision on Dry Cask Fuel Storage Would Be Raised in Either State or Federal Proceedings.W/Certificate of Svc

ML20247F727
Person / Time
Site:	Vermont Yankee
Issue date:	05/25/1989
From:	Sedano R VERMONT, STATE OF
To:
References
CON-#289-8665 OLA, NUDOCS 8905300154
Download: ML20247F727 (5)

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- UNITED STATES OF AMERICA 'i NUCLEAR REGUIATORY' COMMISSION'

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ATOMIC SAFETY AND LICENSING BOARD ~i K l Before Administrative Judges '89 ' MAY 25 ' P3M

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Charles Bechhoefer, Chairman F'!i .1 Gustave A. Linenberger, Jr. I' "

i._,. l James H.. Carpenter I In the_ Matter of )-

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VERMONT YANr.EE NUCLEAR' ) Docket No. 50-271-OIA POWER CORPORATION' ). (Spent. Fuel Pool

) Amendment)

(Vermont Yankee Nuclear )

Power' Station) ) .

) l STATEMENT FROM THE STATE OF VERMONT R2GARDING RATE TREATMENT OF DRY CASK STORAGE

.In the telephone call of April'19, 1989 with all of

.the participants, Vermont was asked to submit a statement

-on rate treatment;of dry cask storage, if it os pursued by Vermont Yankee.

Vermont Yankee Nuclear Power Corporation is a single

. asset corporation, its only asset being the Vermont Yankee nuclear electric generating unit at Vernon, Vermont.- Vermont Yankee is owned in its entirety by nine utility sponsors from the New England states. All of the nuclear plant's electrical generation .is sold wholesale-to its sponsors.

Vermont Yankee's wholesale rate is a t'ormula rate set by the Federal Energy' Regulatory Commiss' ion (FERC) .

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8905300154 890525 ._. 5 PDR ADOCK 05000271

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4 Tne FERC examines the reasonableness and prudence of Vermont Yankee's cost of service. The State of Vermont Department of Public Service may participate as a party to the PERC hearing. The State of Vermont, through retail rate proceedings before its Public Service Board, l examines the reasonableness and prudence of power I purchases by Vermont electric companies who are wholesales customers of Vermont Yankee. The Board may review the cost of Vermont Yankee power and whether the companies should have purchased the power.

Thus, the State of Vermont may examine the rate treatment of dry cask storage directly in a FERC proceeding concerning Vermont Yankee or indirectly with Vermont sponsoring electric companies at the Vermont Public Service Board.

The Vermont Public Service Board and Department of Public Service act in the interest of the public. These proceedings aim to achieve just and reasonable rates and least cost alternatives. While least cost alternatives would obviously be preferred from a consumer rate perspective, it is not the sole factor to be considered in the State's process of deciding the reasonableness of l the alternative. The State will also consider environmental and safety issues, for example, and may determine that the least cost alternative is not preferred for these reasons. Vermont can make no evaluation at this time concerning whether the '

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reasonableness or prudency of~a decision on dry' cask fuel

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. storage. would bel raised . in either state or federal

. proceedings. Vermont _would expect.t'o~make this decision

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1 when an appropriate ratemaking proceeding-begins.

Respectfully submitted,

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/ Richard-P. Sedano Utilities Engineer-Chief Vermont Department of Public Service:

120. State Street-Montpelier, Vermont 05602 (802) 828-2811 u

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liNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION ATOMIC SAFETY AND LICENSING APPEAL BOARD Before Administrative Judges Charles Bechhoefer, Esquire, Chairman Gustave A. Linenberger, Jr.

James H. Carpenter In the Matter of )

)

VERMONT YANKEE NUCLEAR ) Docket No. 50-271-OLA POWER CORPORATION ) (Spent Fuel Pool

) Amendment)

(Vermont Yankee Nuclear )

Power Station) )

)

i CERTIFICATE OF SERVICE I, George E. Young, hereby certify that on May 23, 1989, I made service of the within statement from the State of Vermont Regarding Rate Treatment of Dry Cask Storage in accordance with the rules of the Commission by federal expressing a copy thereof, to the following: '

i Charles Bechhoefer, Esquire, Diane Curran, Esquire I Chairman Harmon Curran & Tousley Administrative Judge Suite 430 Atomic Safety and Licensing 2001 S Street, N.W.

Board Panel Washington, DC 20009 U.S. Nuclear Regulatory Commission Washington, D.C. 20555 Mr. Gustave A. Linenberger, Jr. Carol S. Sneider, Esquire 9 Administrative Judge Assistant Attorney General Atomic Safety and Licensing Environmental Protection Board Panel Division U.S.. Nuclear Regulatory; .

> Department of the Attorney; 9 97 Commission General Washington, D.C. 20555 One Ashburton Place '

Boston, hA 02108 Page 1

v Mr. James H. Carpenter Ann P. Hodgdon, Esquire  ;

Administrative Judge Office of the General Counsel i Atomic Safety and Licensing U.S. Nuclear Regulawory Board Panel Commission U.S. Nuclear Regulatory Washington, DC 20555 Commission  !

Washington, D.C. 20555 i Atomic Safety and Licensing R. K. Gad III Board Panel Ropes & Gray U.S. Nuclear Regulatory 225 Franklin St.

Commission Boston, MA 02110 Washington, DC 20555 Geoffrey M. Huntington, Esquire Alan S. Rosenthal, Esquire Office of the Attorney General Chairman Environmental Protection Bureau Atomic Safety and Licensing State House Annex Appeal Panel 25 Capitol Street U.S. Nuclear Regulatory Concord, NH 03301-6397 Commission Washington, DC 20555 Docketing and Service Branch Atomic Safety and Licensing Office of the Secretary Appeal Panel U.S. Nuclear Regulatory U.S. Nuclear Regulatory Commission Commission

. Washington, DC 20555 Washington, DC 20555

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