NRC-08-0070, DTE Energy - Supplemental Information for Decommissioning Funding Status Report for Fermi 1

DTE Energy - Supplemental Information for Decommissioning Funding Status Report for Fermi 1

ML090330146
Person / Time
Site:	Fermi
Issue date:	01/13/2009
From:	Plona J DTE Energy
To:	Document Control Desk, NRC/FSME
References
NRC-08-0070
Download: ML090330146 (5)

Text

Joseph H. Plona Site Vice President 6400 N. Dixie Highway, Newport, MI 48166 Tel: 734.586.5910 Fax: 734.586.4172 DTE Energy, 10CFR50.75 (f)(i)

January 13, 2009 NRC-08-0070 U. S. Nuclear Regulatory Commission Attention: Document Control Desk Washington D C 20555-0001

References:

1) Enrico Fermi Atomic Power Plant, Unit No. 1 NRC Docket No. 50-16 NRC License No. DPR-9

2) Detroit Edison letter, NRC-08-0026, "Decommissioning Funding Status Report for Fermi 1", date March 31, 2008

Subject:

Supplemental Information for Decommmissioning Funding Status Report for Fermi 1 This letter provides clarification information for the report Detroit Edison submitted in Reference 2 for Fermi 1.

Fermi 1 is a permanently shutdown experimental sodium cooled breeder reactor, which last operated in 1972. It is in the SAFSTOR status and its possession-only license expires in.2025.

Decommissioning activities are being performed with the goal of removing the radioactive material and terminating the Fermi 1 license.

Reference 2 included a copy of the updated DTE Energy Parent Company Guarantee and the financial test for the guarantee providing decommissioning funding. assurance.

P2 U6~

USNRC January 13, 2009 NRC-08-0070 Page 2 The Nuclear Regulatory Commission (NRC) reviewer asked several questions regarding the Reference 2,submittals.. Ms. Lynne Goodman, Detroit Edison and Messers Theodore Smith and Kenneth Kline, from the NRC, discussed the answers in a-telecom on October 14, 2008. The attachment to this letter documents the clarifications provided. Mr. David E. Meader, DTE Energy Chief Financial Officer, has signed the attachment, as requested, since the clarifications pertain to the documents he had previously signed..

Should you have any questions or require additional information; please contact Ms. Lynne Goodman of mystaff at 734-586-1205.'

Sincerely, Joseph H. Plona Site Vice President, Nuclear Generation JHP/LSG/ljd Attachment (1): Clarifications on DTE Energy.Parent Company Guarantee for Fermi 1 and Chief Financial Officer Letter cc: T. Smith P..Lee (NRC Region III)

T. Strong (State of Michigan)

Regional Administrator, Regionf II NRC Resident Office

USNRC January 13, 2009 NRC-08-0070 Page 3 bcc: A. Bodipo-Memba P. Cavazos W. Colonnello J. M. Davis R. Gaston L. S. Goodman, T. Grimaldi T. Malache D. Meador K., L. O'Neill R. Pelzer J. Plona L. D. Schenk

.S.Stasek K. Stump Fermi 1 Staff Information Management (140 NOC) [Fermi 1 Decommissioning Funding Records]

NRR Chron File NRC Notebook (Fermi 1) to NRC-08-0070 January 08, 2009 Page 1 of 2 Clarifications on DTE Energy Company Parent Company Guarantee for Fermi 1 and Chief Financial Officer Letter

1. NRC Request Explicitly state that the Parent Company Guarantee applies only for Fermi 1.

DTE Energy Response The DTE Energy Company (DTE Energy) Parent Company Guarantee for $30,000,000 providing financial assurance for Fermi 1 decommissioning applies only for the Fermi Atomic Power Plant, Unit 1, and for no other reactors or parts thereof.

2. NRC Request State DTE Energy's long-term unsecured debt rating at end of 2007 and its basis.

DTE Energy Response DTE Energy's Senior Unsecured Debt rating at the end of 2007 was BBB-, as rated by Standard and Poor's, and Baa2, as rated by Moody's. This was as reported on Form 10K with the U.S. Securities and Exchange Commission.

DTE Energy has issued long-term unsecured notes rather than bonds. The terminology used in the Parent Company Guarantee refers to notes accordingly. For the financial test, the DTE Energy senior unsecureddebt rating was used, though it was based on notes rather than bonds per the question. The issuance and maturity dates listed in the financial test were for the latest unsecured note issuance. Per discussion with the Standard and Poor's Primary Credit Analyst for DTE Energy, the rating assigned to DTE Energy Company would be applicable to either unsecured notes or bonds of the same duration.

3. NRC Request Address how DTE Energy has determined that its senior unsecured debt rating of BBB-meets the financial test criteria based on its being in the BBB category.

DTE Energy Response DTE Energy Company has stated that its senior unsecured debt ratings meet BBB or better (if issued by Standard & Poor's), or Baa or better (if issued by Moddy's) in the Parent Company Guarantee and Chief Financial Officer (CFO) letter based on its senior unsecured debtrating of BBB- being in the BBB category, and Baa2 being in the Baa category. "BBB" and "Baa" are rating categories, not specific ratings, so DTE Energy has interpreted the criteria to be that the ratings are within the BBB category or Baa category orbetter.,

to NRC-08-0070 January 8, 2009 Page 2 of 2

4. NRC Request The Chief Financial Officer's letter containing the financial test did not explicitly state that he certified the information is true and correct to the best of his knowledge. Include the certification statement in the clarification letter.

DTE Energy Response The CFO signature on the CFO letter, Attachment 2, to Reference 2), was intended to certify that the information was true and correct to the best of his knowledge.

I hereby certify the information in the clarification is true and correct to the best of my knowledge.

By: T David E. Meader' V- Date

(-6-6,9 Executive Vice President and Chief Financial Officer