ML23270C007
| ML23270C007 | |
| Person / Time | |
|---|---|
| Site: | Peach Bottom, Salem, Hope Creek  |
| Issue date: | 11/29/2023 |
| From: | Mark King Office of Nuclear Reactor Regulation |
| To: | Mcfeaters C Public Service Enterprise Group |
| Kim J, NRR/DORL/LPL1 | |
| References | |
| EPID L-2023-LRO-0063 | |
| Download: ML23270C007 (1) | |
Text
November 29, 2023 Mr. Charles V. McFeaters President and Chief Nuclear Officer PSEG Nuclear LLC - N09 P.O. Box 236 Hancocks Bridge, NJ 08038
SUBJECT:
HOPE CREEK GENERATING STATION, SALEM NUCLEAR GENERATING STATION, UNIT NOS. 1 AND 2, AND PEACH BOTTOM ATOMIC POWER STATION, UNIT NOS. 2 AND 3 - NOTICE OF OBJECTION TO PROPOSED AMENDMENT TO DECOMMISSIONING TRUST AGREEMENT (EPID L-2023-LRO-0063)
Dear Mr. McFeaters:
On behalf of the U.S. Nuclear Regulatory Commission (NRC), I am providing this written notice of objection to the PSEG Nuclear LLC (PSEG) letter dated September 8, 2023 (Agencywide Documents Access and Management System (ADAMS) Accession No. ML23252A001), that provided notice to the NRC regarding a proposed amendment to the PSEG Master Decommissioning Trust Agreement (Trust Agreement) that PSEG relies upon to provide reasonable assurance that adequate funds will be available for decommissioning Hope Creek Generating Station, Salem Nuclear Generating Station, Unit Nos. 1 and 2, and Peach Bottom Atomic Power Station, Unit Nos. 2 and 3. Therefore, pursuant to Title 10 of the Code of Federal Regulations (10 CFR) 50.75(h)(1)(iii), the Trust Agreement may not be amended as proposed.
In its letter dated September 8, 2023, PSEG stated that the proposed amendment is associated with subaccounts established within the PSEG nuclear decommissioning trust (NDT) whose accumulated funds are not intended to be dedicated to decommission the PSEG facilities as defined in 10 CFR 50.2 (i.e., radiological decommissioning) and that, accordingly, the proposed changes would amend the Trust Agreement to clarify that the funds in these subaccounts will not be relied upon for providing the decommissioning financial assurance required by 10 CFR 50.75. PSEG explained the basis for this proposed amendment by stating that, when funds in the NDT are not distinctly identified, the NRC considers all of the funds to be dedicated for radiological decommissioning, but that the NRC also does not object to the commingling of funds for radiological decommissioning with funds for non-radiological decommissioning in the NDT as long as licensees are able to provide a separate accounting of the amounts dedicated for radiological decommissioning. As of the end of 2022, PSEG has established subaccounts in the NDT to segregate funds to pay for all activities that are part of the larger decommissioning process and, starting in 2023 and going forward, certain earnings from NDT investments are accumulated in the subaccounts. The amount of NDT funds dedicated for radiological decommissioning are as most recently reported under 10 CFR 50.75(f)(1). Therefore, according to PSEG, until the next 10 CFR 50.75(f)(1) report, this amount determines the minimum level above which certain earnings would be available to accumulate in the subaccounts, taking into account NRC-allowed expenses. PSEG concluded that earnings from the NDT in excess of the reported amount may be accumulated in the subaccounts and that withdrawals from these
C. McFeaters subaccounts would not be restricted by the NRCs regulations to radiological decommissioning expenses. Instead, these funds would be available for other uses; specifically, they would be made available to pay for activities related to the definition of decommissioning costs in 26 CFR 1.468A-1(b)(6) of the Treasury Department regulations implementing Section 468A of the Internal Revenue Code. PSEG stated that this approach is consistent with the prepayment method of providing financial assurance in 10 CFR 50.75(e)(1)(i).
The NRC staff reviewed the PSEG letter dated September 8, 2023. The NRC staff agrees that subaccounts may be established and separately accounted for and that their withdrawals are not necessarily restricted to radiological decommissioning expenses. However, the earnings from funds originally dedicated for radiological decommissioning in a decommissioning trust fund, whether established under the prepayment method or otherwise, are restricted by the NRCs regulations at 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(1)(iv) to being withdrawn only for radiological decommissioning expenses, even when such earnings are claimed to be in excess of what is required for radiological decommissioning and are directed to subaccounts purporting to allow for other types of withdrawals. In order for such funds in the subaccounts described by PSEG as Non-50.75 Subaccounts to be used for expenses other than radiological decommissioning, PSEG would need to request and have approved an exemption, under 10 CFR 50.12, from the NRCs regulations at 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(1)(iv) in addition to amending the Trust Agreement. Because the proposed amendment to the Trust Agreement cannot be implemented without such an exemption, the NRC objects to the proposed amendment and, therefore, according to 10 CFR 50.75(h)(1)(iii),
the Trust Agreement may not be amended as proposed.
If you have any questions or concerns, please contact James Kim at (301) 415-4125 or by email at James.Kim@nrc.gov.
Sincerely, Andrea D. Veil, Director Office of Nuclear Reactor Regulation Docket Nos.: 50-354, 50-272, 50-311, 50-277, and 50-278 cc: Listserv Michael F.
King Digitally signed by Michael F. King Date: 2023.11.29 14:38:11 -05'00'
ML23270C007 NRR-106 OFFICE NRR/DORL/LPL1/PM NRR/DORL/LPL1/LA NMSS/REFS/FAB/BC NMSS/REFS/D NAME JKim KEntz FMiller CRegan DATE 9/28/2023 9/28/2023 10/3/2023 10/4/2023 OFFICE OGC - NLO NRR/DORL/LPL1/BC NRR/DORL/DD NRR/OD NAME JWachutka HGonzález JHeisserer AVeil (MKing for)
DATE 10/4/2023 10/13/2023 10/26/2023 11/29/2023