ML25111A048
| ML25111A048 | |
| Person / Time | |
|---|---|
| Site: | Yankee Rowe |
| Issue date: | 02/28/2025 |
| From: | Conry T Yankee Atomic Electric Co |
| To: | Document Control Desk, Office of Nuclear Material Safety and Safeguards |
| References | |
| DPR-003 | |
| Download: ML25111A048 (1) | |
Text
YANKEE ATOMIC ELECTRIC COMPANY 49 Yankee Road, Rowe, Massachusetts 01367 ATTN: Document Control Desk U.S. Nuclear Regulatory Commission Washington, DC 20555 - 0001 Yankee Atomic Electric Company February 28, 2025 BYR 2025-006 10 CFR 50.4 10 CFR 50.75(f)(l) and (2) 10 CFR 50.82(a)(8)(v) and (vi)
Yankee Nuclear Power Station Independent Spent Fuel Storage Installation NRC License No. DPR-3 (NRC Docket Nos.50-029)
/ L --0 :5 /
Subject:
Decommissioning Funding Assurance Status Report On February 26, 1992, Yankee Atomic Electric Company (YAEC) informed the NRC that the Board of Directors ofYAEC had decided to permanently cease operations at the Yankee Nuclear Power Station and that fuel had been permanently removed from the reactor (Reference 1 ). In accordance with 10 CFR 50.82(a)(2), the certifications in the letter modified the Y AEC license to permanently withdraw Y AEC's authority to operate the reactor. In 1993. Y AEC commenced decommissioning the power plant. On August I 0, 2007, the NRC released most of the formerly licensed land for unrestricted use, shrinking the licensed land to the Independent Spent Fuel Storage Installation (ISFST) only (Reference 2). The only decommissioning activities that remain are those associated with the decommissioning of the Yankee Nuclear Power Station ISFSI, which is currently scheduled to occur after the Department of Energy (DOE) removes the irradiated fuel and Greater than Class C (GTCC) waste.
In Attachment 1, YAEC provides the attached Decommissioning Funding Assurance Status Report for the Yankee Nuclear Power Station lSFSI to comply with 10 CFR 50. 75(f)(l) and (2) and 10 CFR 50.82(a)(8)(v) and (vi).
This letter contains no regulatory commitments.
Yankee Atomic Electric Company BYR 2025-006\\February 28, 2025\\Page 2 If you have any questions regarding this letter, please do not hesitate to contact me at (508) 612-3322.
Respectfully, Timothy Conry Treasurer
Attachment:
I. Decommissioning Funding Status Report for the Yankee Nuclear Power Station Independent Spent Fuel Storage Installation (Status as of 12/31/2024)
References:
- 1. A. C. Kadak (Y AEC) letter to NRC, "Permanent Cessation of Power Operations at the Yankee Nuclear Power Station," BYR-92-024, dated February 26, 1992
- 2. NRC letter to Yankee Atomic Power Company, "Yankee Nuclear Power Station - Release of Land from Part 50 License," dated August I 0, 2004 cc:
A. Kock, NRC Region 1 Administrator A. Dimitriadis, Chief, Decommissioning Branch, NRC, Region l Y. Diaz-Sanabria, Chief, Division of Fuel Management, Storage and Transportation Licensing Branch J. Viveiros, Planning, Preparedness & Nuclear Section Chief, MEMA
ATTACHMENT l TO BYR 2025-006 DECOMMISSIONING FUNDING STATUS REPORT FOR THE YANKEE NUCLEAR POWER STATION INDEPENDENT SPENT FUEL STORAGE INSTALLA TIO (STATUS AS OF 12/31/2024) to BYR 2025-006 Decommissioning Funding Status Report for the Yankee Nuclear Power Station Independent Spent Fuel Storage Installation (Status as of 12/31/2024) 10 CFR Requirement
Response
Comment 10 CFR 50.75(t)(l) and (2) Requirements I. The amount of decommissioning
- $6.0 million 10 CFR 50.75(c) provides the calculation basis for detem1ining minimum amounts of funds estimated to be required (in 2024 funding required to demonstrate reasonable assurance of funds for decommissioning.
pursuant to 10 CFR 50.75 (b) and dollars)
However, the methodology does not take into consideration work that has already been (c) completed. In 1993, Y AEC commenced decommissioning the power plant. On August 10, 2007, the NRC released most of the fom1erly licensed land for unrestricted use, shrinking the licensed land to the Independent Fuel Storage Installation (!SFSJ). Thus, the only decommissioning activities and decommissioning funding requirements that remain are those associated with the decommissioning of the Yankee Nuclear Power Station ISFSI, which is currently scheduled to occur after the Department of Energy (DOE) removes the irradiated fuel and Greater than Class C (GTCC) waste.
On December I 0, 2024, Yankee Atomic Electric Company (Y AEC) provided a three-year update to the decommissioning funding plan for the Yankee Nuclear Power Station ISFSI in accordance with 10 CFR 72.30(c) that included a revised Decommissioning Cost Estimate (DCE) for the Yankee Nuclear Power Station ISFSI.
- 2. The amount accumulated at the
- $22.1 Y AEC has established an account within its Nuclear Decommissioning Trust (NOT) end of the calendar year preceding million (as of entitled " ISFSI Radiological Decom" that segregates the funds for radiological the date of the report for items 12/31/2024) decommissioning of the ISFSI from tl1e larger balance of funds for ongoing included in IO CFR 50. 75 management of irradiated fuel and GTCC waste held in the NDT. This market balance (e)(l)(i) only reflects the funds in the segregated account for radiological decommissioning of the ISFSI.
On April 4, 2024, tl1e NRC granted exemptions from the requirements of IO CFR 50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(2) to permit YAEC to make withdrawals from the segregated account, on an annual basis, for spent nuclear fuel (SNF) and Greater than Class C (GTCC) waste management and non-radiological site restoration, without prior notification to the NRC. More specifically, with tl1ese exemptions, Y AEC would be able to annually transfer funds exceeding 110 percent of their inflation-adjusted Decommissioning Cost Estiniate from the segregated account to its overarching Nuclear Decommissioning Trust and use those funds for SNF and GTCC waste management Page I of7
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- 6.
ttachment l to BYR 2025-006 Decommissioning Funding Status Report for the Yankee Nuclear Power Station Independent Spent Fuel Storage Installation
!Status as of 12/31/2024) 10 CFR Requirement
Response
Comment and non-radiological site restoration. Y AEC made one such transfer in 2024 while maintaining a fund balance that exceeded the 1 10 percent cost estimate threshold.
Schedule of the annual amounts
$0 No additional comments.
remaining to be collected Including an10unts beyond those required in l O CFR 50.75(e)(l)(i)
- Years to collect NIA The assumptions used regarding No additional comments.
escalation of the decommissioning cost estimate, rates of earnings oa decommissioning funds, and rates of other factors used in funding projections are:
Annual escalation rate 2.6%
Annual after-tax earnings rate on decommissioning trust funds 5.0%
Other factors assumed None Any contracts upon which the Yes Y AEC may collect funds through its power contracts and amendatory agreements under licensee is relying pursuant to FERC regulation. The power contracts and the an1endatory agreements specify the 10 CFR 50.75(e)(l)(ii)(A) obligations of the purchasers for the costs of Y AEC, including decommissioning costs.
Such contracts have been filed with FERC.
Any modifications to a licensee's None No additional comments.
current method of providing financial assurance occurring since the last submitted report.
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- 7.
Attachment I to BYR 2025-006 Decommissioning Funding Status Report for the Yankee Nuclear Power Station Independent Spent Fuel Storage Installation (Status as of I 2/31/2024) 10 CFR Requirement
Response
Comment Any material changes to trust None No additional comments.
agreements.
10 CFR 50.82(a)(8)(v) (A) through (D) Requirements
- 1. The amount spent on In 1993, Y AEC commenced decommissioning the power plant. On August 10, 2007, decommissioning, both:
the NRC released most of the formerly licensed land for unrestricted use, shrinking the licensed land to the ISFSI. *n1e only decommissioning activities that remain are those Cumulative associated with the decommissioning of the Yankee Nuclear Power Station LSFSJ,
$0 (Refer to which is currently scheduled to occur after the DOE removes the irradiated fuel and and Comment)
GTCC waste.
Over the previous calendar year
$0 10 CFR 50.82(a)(8)(v) became effective on December 17, 2012. At that time, the only areas that were within the control of the Operating License No. DPR-3 were those associated with the Yankee Nuclear Power Station LSFSI. Thus, Y AEC is only presenting the information associated witl1 the decommissioning of the areas that remain witl1in the control of Operating License No. DPR-3.
Presently, Y AEC is storing irradiated fuel and GTCC waste on site until it is removed by tl1e DOE. Decommissioning of the Yankee Nuclear Power Station ISFST is currently scheduled to be completed in calendar year 2038, after the DOE removes the irradiated fuel and GTCC waste. Tims, the cumulative cost spent on decommissioning the Yankee Nuclear Power Station ISFSI is $0, and the amount spent in calendar year 2024 is $0.
As previously discussed, on April 4, 2024, the NRC granted exemptions from the requirements of 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 50. 75(h)(2) to permit Y AEC to make withdrawals from the segregated account, on an annual basis, for SNF and GTCC waste management and non-radiological site restoration, without prior notification to the NRC.
- 2. The remaining balance of any
- $22.1 YAEC has established an account within its NDT entitled "lSFSl Radiological Decom" decommissioning funds.
million (as of that segregates tl1e funds for radiological decommissioning of the ISFST from the larger 12/31/2024) balance of funds for ongoing management of irradiated fuel and GTCC waste held in Page 3 of7
- 3. to BYR 2025-006 Decommissioning Funding Status Report for the Yankee Nuclear Power Station Independent Spent Fuel Storage Installation (Status as of 12/31/2024) 10 CFR Requirement
Response
Comment the NDT. This market balance only reflects the funds in the segregated account for radiological decommissioning of the lSFSI.
As previously discussed, on April 4, 2024, the NRC granted exemptions from the requirements of 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 50. 75(11)(2) to permit YAEC to make withdrawals from the segregated accow1t, on an annual basis, for SNF and GTCC waste management and non-radiological site restoration, without prior notification to the NRC.
The amount provided by other
$0 As of December 31, 2024, YAEC's NDT account entitled "ISFSI Radiological Decom" financial assurance methods being has a balance more than sufficient to cover the estimated cost of the remaining relied upon radiological decommissioning of the ISFSI. However, if in the future, the balance in the account is not fully funded to cover the estimated cost of the remaining radiological decommissioning of the ISFSL, tile Company has several methods of obtaining additional funds, if required, to cover projected costs.
First, Y AEC may collect funds through its power contracts and amendatory agreements under FERC regulation. The power contracts and the amendatory agreements specify the obligations of the purchasers for the costs of Y AEC, including decommissioning.
Pursuant to these power contracts, YAEC has the ongoing ability to seek collections from its purchasers for additional funds that may be required to cover these costs.
Second, YAEC has received proceeds from the successful litigation of several phases of its breach of contract damages claims against the DOE for failure to begin the removal of spent nuclear fuel (SNF) and GTCC waste from the site in 1998. Y AEC will continue to file claims against the DOE as long as the DOE continues to breach its contract obligations related to SNF and GTCC waste.
A Y AEC FERC filing approved in June 2013, implemented a fifteen-year funding mechanism. Until the 2013 FERC filing, the Company had employed a "full funding" assumption in developing funding requirements. The fifteen-year funding mechanism was put in place to incorporate the potential for the receipt of future DOE breach of Page 4 of7
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- 7. to BYR 2025-006 Decommissioning Funding Status Report for the Yankee Nuclear Power Station Independent Spent Fuel Storage Installation (Status as of 12/31/2024) 10 CFR Requirement
Response
Comment contract damages as a source of funding as discussed below. If future damage recovery does not occur, the Company has the ability to apply to FERC for more funding, if necessary. The approved FERC filing also requires Y AEC to provide an infomiational filing regarding the adequacy of funding if five years pass without receipt of damage awards from litigation with the DOE.
Third, Y AEC expects to utilize the investment return on Decommissioning Trust assets as a funding source. The current assumed rate of investment return, after fees and taxes, is 5.0%.
Fourth, as previously discussed, on April 4, 2024, the NRC granted exemptions from the requirements of 10 CFR 50.82(a)(8)(i)(A) and IO CFR 50.75(h)(2) to permit YAEC to make withdrawals from the segregated account, on an annual basis, for SNF and GTCC waste management and non-radiological site restoration, without prior notification to the NRC.
An estimate of the costs to
- $6.0 million On December I 0, 2024, Y AEC provided a three-year update to the decommissioning complete decommissioning, (in 2024 funding plan in accordance with IO CFR 72.30(c) that included a revised DCE for the reflecting any difference between dollars)
Yankee Nuclear Power Station ISFSI.
actual and estimated costs for work performed during the year.
The decommissioning criteria I0 CFR The assumptions regarding the decommissioning cost estimate are provided in the DCE upon which the estimate is based
- 20. 1402 for the Yankee Nuclear Power Station ISFSI provided on December I 0, 2024.
Any modifications occurring to a None No additional comment.
licensee's current method of providing financial assurance since the last submitted report.
Any material changes to trust None No additional comment agreements or financial assurance contracts.
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Attachment I to BYR 2025-006 Decommissioning Funding Status Report for the Yankee Nuclear Power Station Independent Spent Fuel Storage Installation (Status as of I 2/3 I /2024) 10 CFR Requirement
Response
Comment 10 CFR 50.82(a)(8)(vi) Requirement I.
Additional financial assurance None As of December 31, 2024, Y AEC's NDT account entitled "ISFSI Radiological Decom" required lo cover the estimate cost has a balance more than sufficient to cover the estimated cost of the remaining of completion.
radiological decommissioning of the ISFSI. However, if in the future, the balance in the account is not fully funded to cover tl1e estimated cost of the remaining radiological decommissioning of the ISFSI, the Company has several methods of obtaining additional funds, if required, to cover projected costs.
First, Y AEC may collect funds through its power contracts and amendatory agreements under FERC regulation. The power contracts and the amendatory agreements specify the obligations of the purchasers for tl1e costs of Y AEC, including decommissioning.
Pursuant to these power contracts, Y AEC has the ongoing ability to seek collections from its purchasers for additional funds that may be required to cover these costs.
Second, Y AEC has received proceeds from the successful litigation of several phases of its breach of contract daniages claims against the DOE for failure to begin the removal of spent nuclear fuel (SNF) and GTCC waste from the site in 1998. Y AEC will continue to file claims against the DOE as long as the DOE continues to breach its contract obligations related to SNF and GTCC waste.
A Y AEC FERC filing approved in June 20 13, implemented a fifteen-year funding mechanism. Until the 2013 FERC filing, the Company had employed a "full funding" assumption in developing funding requirements. The fifteen-year funding mechanism was put in place to incorporate the potential for the receipt of future DOE breach of contract damages as a source of funding as discussed below. If future damage recovery does not occur, the Company has the ability to apply to FERC for more funding, if necessary. The approved FERC filing also requires YAEC to provide an infom1ational filing regarding the adequacy of funding if five years pass without receipt of daniage awards from litigation with the DOE.
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Attachment I to BYR 2025-006 Decommissioning Funding Status Report for the Yankee Nuclear Power Station Independent Spent Fuel Storage Installation (Status as of 12/31/2024) 10 CFR Requirement
Response
Comment Third, YAEC expects to utilize the investment return on Decommissioning Trust assets as a funding source. The current assumed rate of investment return, after fees and taxes, is5.0%.
Fourth, as previously discussed, on April 4, 2024, the NRC granted exemptions from the requirements of 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 50.75(11)(2) to permit YAEC to make withdrawals from the segregated account, on an annual basis, for SNF and GTCC waste management and non-radiological site restoration, without prior notification to the NRC.
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