ML23243A943
| ML23243A943 | |
| Person / Time | |
|---|---|
| Site: | 07200071 |
| Issue date: | 12/06/2023 |
| From: | Yoira Diaz-Sanabria Storage and Transportation Licensing Branch |
| To: | Domingos C DTE Electric Company |
| References | |
| EPID L-2017-FPR-0025 | |
| Download: ML23243A943 (5) | |
Text
UNITED STATES NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 20555-0001 December 6, 2023 Christopher P. Domingos Site Vice President DTE Electric Company 6400 N. Dixie Highway Newport, MI 48166
SUBJECT:
THE U.S. NUCLEAR REGULATORY COMMISSIONS ANALYSIS OF DTE ELECTRIC COMPANYS 2017, 2020, AND 2023 UPDATED DECOMMISSIONING FUNDING PLANS FOR FERMI 2 INDEPENDENT SPENT FUEL STORAGE INSTALLATIONS
Dear Christopher P. Domingos:
By letters dated March 30, 2017 (Agencywide Documents Access and Management System (ADAMS) Accession No. ML17089A789), March 30, 2020 (ML20090H578), and March 30, 2023 (ML23089A081), as supplemented on October 31, 2023 (ML23304A085), DTE Electric Company (DTE) submitted updated decommissioning funding plans (DFPs) for the independent spent fuel storage installation (ISFSI) at Fermi, Unit 2, (Fermi 2), located in Newport, Michigan, for U.S. Nuclear Regulatory Commission (NRC) staff review and approval.
Previously, by letter dated July 2, 2014 (ML14183B584), DTE submitted the initial DFP for the ISFSI at Fermi 2 for NRCs review and approval. The NRC staff reviewed the initial DFP submittal for Fermi 2 ISFSI and documented its findings in its letter dated April 7, 2021 (ML21068A071). In support of its approval of the initial 2014 DFP, the NRC issued an environmental assessment and its associated finding of no significant impact on March 29, 2021 (ML21056A138), which was published in the Federal Register (FR) on April 5, 2021 (86 FR 17644).
Pursuant to Title 10 of the Code of Federal Regulations (10 CFR), Section 72.30(b), each holder of, or applicant for, a license under 10 CFR Part 72 must submit for NRC review and approval a DFP containing information on how reasonable assurance will be provided that funds will be available to decommission its ISFSIs. The DFP must contain a detailed decommissioning cost estimate (DCE) in an amount reflecting: (1) the cost of an independent contractor to perform all decommissioning activities, (2) an adequate contingency factor, and (3) the cost of meeting the 10 CFR 20.1402 unrestricted use criteria (or the cost of meeting the 10 CFR 20.1403 restricted use criteria, provided the licensee can demonstrate its ability to meet these criteria). The licensees DFP must also identify and justify using the key assumptions contained in the DCE.
Further, the DFP must describe the method of assuring funds for ISFSI decommissioning, including means for adjusting cost estimates and associated funding levels periodically over the life of the ISFSI. Additionally, the DFP must specify the volume of onsite subsurface material containing residual radioactivity that will require remediation to meet the criteria for license termination and contain a certification that financial assurance for ISFSI decommissioning has been provided in the amount of the DCE.
C. P. Domingos Pursuant to 10 CFR 72.30(c), at the time of license renewal and at intervals not to exceed 3 years, the initial DFP required to be submitted by 10 CFR 72.30(b) must be resubmitted with adjustments as necessary to account for changes in costs and the extent of contamination in an updated DFP. The updated DFP must update the information submitted with the original or prior approved plan. In addition, the updated DFP must also specifically consider the effect of the following events on decommissioning costs, as required by 10 CFR 72.30(c)(1)-(4): (1) spills of radioactive material producing additional residual radioactivity in onsite subsurface material, (2) facility modifications, (3) changes in authorized possession limits, and (4) actual remediation costs that exceed the previous cost estimate.
In accordance with 10 CFR 72.30(c), and using NUREG-1757, Vol. 3, Rev. 1, Consolidated Decommissioning Guidance, dated February 2012, the NRC staff reviewed the following updated DFPs submitted by Fermi 2, including the updated DCEs and the method of assuring funds for decommissioning.
2017 Updated DFP In its 2017 updated DFP, DTE estimated that the total cost to decommission the ISFSI at Fermi 2, for unrestricted use, to be $8.9 million, in 2016 dollars.
DTEs 2017 updated DCE, as supplemented by letter dated October 31, 2023, provided narratives on each of the requirements of 10 CFR 72.30(c)(1)-(4). Specifically, the licensee explained that there were no changes in the factors listed in 10 CFR 72.30(c)(1)-(4). Based on its review of DTEs 2017 submittal, the NRC staff finds that the updated DCE: was based on reasonable costs of a third-party contractor; included an adequate contingency factor; reflected the cost of meeting the 10 CFR 20.1402 criteria for unrestricted use; and was based on reasonable and documented assumptions. Therefore, the NRC staff finds that the 2017 updated DCE adequately estimated the cost, at the time, to carry out required ISFSI decommissioning activities prior to license termination, and that the updated DCE is acceptable.
In the 2017 updated DFP, DTE relied on an external sinking fund as financial assurance for ISFSI decommissioning, a method authorized by 10 CFR 50.75(e)(1)(ii)(A) which is allowed under 10 CFR 72.30(e)(5).1 This is allowed because the Fermi 2 ISFSI belongs to a licensee with a power reactor license under 10 CFR Part 50.The NRC staff has reviewed the licensees 2017 updated DFP and found that the aggregate dollar amount of the licensees financial instruments provides adequate financial assurance to cover its cost estimates. Therefore, the NRC staff finds that these financial instruments are acceptable.
2020 Updated DFP In its 2020 updated DFP, DTE estimated that the total cost to decommission the ISFSI at Fermi 2 is $9.6 million, for unrestricted use, in 2019 dollars.
DTEs 2020 DCE provided narratives on each of the requirements of 10 CFR 72.30(c)(1)-(4).
Specifically, the licensee explained that there were no changes in the factors listed in 10 CFR 72.30(c)(1)-(4). Based on its review of DTEs 2020 submittal, the NRC staff finds that the updated DCE: wase based on reasonable costs of a third-party contractor; included an adequate contingency factor; reflected the cost of meeting the 10 CFR 20.1402 criteria for 1 As indicated in the initial DFP, DTE collects the Fermi 2 ISFSI decommissioning funding in rates and fees from customers as approved by the Michigan Public Service Commission (ML14183B584).
C. P. Domingos unrestricted use; and was based on reasonable and documented assumptions. Therefore, the NRC staff finds that the 2020 updated DCE adequately estimated the cost, at the time, to carry out required ISFSI decommissioning activities prior to license termination, and that the updated DCE is acceptable.
In the 2020 updated DFP, DTE relied on an external sinking fund as financial assurance for ISFSI decommissioning, a method authorized by 10 CFR 50.75(e)(1)(ii)(A) which is allowed under 10 CFR 72.30(e)(5).2 This is allowed because the Fermi 2 ISFSI belongs to a licensee with a power reactor license under 10 CFR Part 50.©. The NRC staff has reviewed the licensees 2020 updated DFP and found that the aggregate dollar amount of the licensees financial instruments provided adequate financial assurance to cover its cost estimate.
Therefore, the NRC staff finds that these financial instruments are acceptable.
2023 Updated DFP In its 2023 updated DFP, DTE estimated that the total cost to decommission the ISFSI at Fermi 2 is $10.9 million, for unrestricted use, in 2022 dollars.
DTEs 2023 DCEs provided narratives on each of the requirements of 10 CFR 72.30(c)(1)-(4).
Specifically, the licensee explained that there were no changes in the factors listed in 10 CFR 72.30(c)(1)-(4). Based on its review of DTEs 2023 submittal, the NRC staff finds that the updated DCE: is based on reasonable costs of a third-party contractor; includes an adequate contingency factor; reflects the cost of meeting the 10 CFR 20.1402 criteria for unrestricted use; and is based on reasonable and documented assumptions. Therefore, the NRC staff finds that the 2023 updated DCE adequately estimates the cost, at this time, to carry out required ISFSI decommissioning activities prior to license termination, and that the updated DCE is acceptable.
In the 2023 updated DFP, DTE relied on an external sinking fund as financial assurance for ISFSI decommissioning, a method authorized by 10 CFR 50.75(e)(1)(ii)(A) and (B) which is allowed under 10 CFR 72.30(e)(5). This is allowed because the Fermi 2 ISFSI belongs to a licensee with a power reactor license under 10 CFR Part 50. The NRC staff has reviewed the licensees 2023 updated DFP and found that the aggregate dollar amount of the licensees financial instruments provide adequate financial assurance to cover its cost estimates.
Therefore, the NRC staff finds that these financial instruments are acceptable.
Conclusion The NRC staff reviewed DTEs 2017, 2020, 2023 updated DFP submissions, including the updated DCEs and the method of assuring funds for decommissioning, in accordance with 10 CFR 72.30(c) and NUREG-1757, Vol. 3, Rev. 1, Consolidated Decommissioning Guidance.
Based on its review, the NRC staff finds that the updated DFPs contain the information required by 10 CFR 72.30(c) and that DTEs has provided reasonable assurance by which funds will be available to decommission the ISFSI at Fermi 2. Therefore, the NRC staff finds that the DCEs adequately estimated the cost, at this time, to carry out required ISFSI decommissioning activities prior to license termination, and that the DCEs are reasonable.
In addition to the NRC staffs review of the above updated DFPs, the NRC staff completed an environmental review. The NRC staff published a summary of the results of the environmental 2 As indicated in the initial DFP, DTE collects the Fermi 2 ISFSI decommissioning funding in rates and fees from customers as approved by the Michigan Public Service Commission (ML14183B584).
C. P. Domingos review in the Federal Register (88 FR 58320) August 25, 2023, for the Fermi 2 ISFSI. The environmental assessment and findings of no significant impact for Fermi 2 ISFSI is available in https://www.regulations.gov under the Docket ID: NRC-2023-0135. The NRC staff determined that there was no environmental impact from the NRC staffs review and approval of DTEs updated DFPs.
In accordance with 10 CFR 2.390, Public inspections, exemptions, requests for withholding, a copy of this letter will be available electronically for public inspection in the NRC Public Document Room (PDR), or from the Publicly Available Records component of the NRCs ADAMS. ADAMS is accessible from the NRC website at http://www.nrc.gov/reading-rm/adams.html. The PDR is open by appointment. To make an appointment to visit the PDR, please send an email to PDR.Resource@nrc.gov or call 1-800-397-4209 or 301-415-4737, between 8 a.m. and 4 p.m. eastern time (ET), Monday through Friday, except Federal holidays.
If you have any questions regarding this matter, please contact me at (301) 415-8064 or via email at yoira.diaz-sanabria@nrc.gov.
Sincerely, Signed by Diaz-Sanabria, Yoira on 12/06/23 Yoira K. Diaz-Sanabria, Chief Storage and Transportation Licensing Branch Division of Fuel Management Office of Nuclear Material Safety and Safeguards Docket No.: 72-71 License No.: SFGL-58 EPID No.: L-2017-FPR-0025 cc:
Eric Frank, Manager - Licensing DTE Electric Company
C. P. Domingos
SUBJECT:
THE U.S. NUCLEAR REGULATORY COMMISSIONS ANALYSIS OF DTE ELECTRIC COMPANYS 2017, 2020, AND 2023 UPDATED DECOMMISSIONING FUNDING PLANS FOR FERMI 2 INDEPENDENT SPENT FUEL STORAGE INSTALLATIONS DOCUMENT DATED:
December 6, 2023 DISTRIBUTION:
PUBLIC DFM r/f FMiller, NMSS SMcCarthy, NMSS LPope, NMSS CJacobs, NMSS DAtkinson, NMSS KBanovac, NMSS RidsNmssRefsFab ADAMS Accession Number: ML23243A943