RA-10-005, Maine Yankee, Decommissioning Funding Assurance Status Report - 10 CFR 50.75

Maine Yankee, Decommissioning Funding Assurance Status Report - 10 CFR 50.75

ML100750454
Person / Time
Site:	Maine Yankee
Issue date:	03/09/2010
From:	Pizzella C M Maine Yankee Atomic Power Co
To:	Document Control Desk, Office of Nuclear Material Safety and Safeguards
References
CMP-10-03, MN-10-002, RA-10-005
Download: ML100750454 (4)

Text

,,. ', C 1 Carla M. Pizzella Treasurer MAINE YANKEE 321 OLD FERRY ROAD, WISCASSET, ME 04578 March 9, 2010 CMP-10-03 860-267-6426 x 304 Phone 860-267-3911 Fax MN-10-002 RA-10-005 UNITED STATES NUCLEAR REGULATORY COMMISSION Attention:

Document Control Desk Washington, DC 20555

Reference:

(a) License No. DPR-36 (Docket No. 50-309)(b) Letter: M. B. Sellman to USNRC; Certifications of Permanent Cessation of Power Operation and Permanent Removal of Fuel From the Reactor; MN-97-89, dated August 7, 1997 (c) License Amendment No. 172 to Facility Operating License No.DPR-36, Maine Yankee Atomic Power Station dated September 30, 2005 (d) USNRC Regulatory Issue Summary (RIS) 2001-07, REV 1

Subject:

Decommissioning Funding Assurance Status Report -10 CFR 50.75 Gentlemen:

In reference (b), Maine Yankee informed the USNRC that the Board of Directors of Maine Yankee had decided to permanently cease operations at the Maine Yankee plant and that fuel had been permanently removed from the reactor. In accordance with 10 CFR 50.82(a)(2) the certifications in the letter modified the Maine Yankee license to permanently withdraw Maine Yankee's authority to operate the reactor. In 1998, Maine Yankee commenced decommissioning the power plant that was subsequently released from the Part 50 license in September 2005. In Reference (c), the NRC amended the Maine Yankee license, releasing most of the formerly licensed land for unrestricted use, shrinking the licensed land to the ISFSI only.In accordance with the requirements of 10 CFR 50.75, direction provided by the NRC staff on March 24, 2006 and recent RIS 2001-07, Rev 1 regulatory clarification, Maine Yankee hereby submits its report on the status of decommissioning funding for the year ending December 31, 2009 for Maine Yankee. Attachment 1 provides the requested information.

If you have any questions please contact me at 860-267-6426 x304.Very truly yours, Carla M. P izzella uTreasurer

Enclosure:

Maine Yankee -"NRC Decommissioning Funding Status Report -December 31, 2009" c: J. Joustra, Chief, Decommissioning Branch, Region 1 S. J. Collins, NRC Regional Administrator, Region 1 P. J. Dostie, State of Maine J. Goshen, NRC Project Manager, Maine Yankee Plant J. Hyland, State of Maine Attachment I to MY RA-10-005 and MN-10-002, page 1 of 2 NRC Decommissioning Funding Status Report Maine Yankee (Status as of 12131109)1. The amount of decommissioning funds estimated to be required pursuant to 10 CFR 50.75(b) and (c).2. The amount accumulated at the end of the calendar year preceding the date of the report for items included in 10 CFR 50.75 (e)(1)(ii).

3. Schedule of the annual amounts remaining to be collected including amounts beyond those required in 10 CFR 50.75 (e)(1)(1).

$119.9 million 1$95.7 million 2 None 4. The assumptions used regarding escalation of the decommissioning cost estimate, rates of earnings on decommissioning funds, and rates of other factors used in funding projections are: Annual escalation rate Annual after-tax earnings rate on decommissioning trust funds Other factors assumed 2.50% (2010-2023) 5.5% (reduced in last few years)None Since the original power plant has been decommissioned and the license amended, the only remaining decommissioning as defined by the NRC in 10 CFR 50.75 is decontamination and dismantlement of the ISFSI once the fuel is removed. The Site-Specific Cost Estimate for future costs beyond 2009 is $119.9 million (in 2009 dollars) and includes the current estimate for spent fuel management costs i.e. Long-term ISFSI operations through 2023 ($106.3 million) and D&D of the ISFSI ($13.6 million).2 This accrued market value balance includes amounts in the Decommissioning Trust for all decommissioning costs including site restoration and long-term spent fuel storage as well as decommissioning as defined in 10 CFR 50.75. Since the original power plant has been decommissioned and the license amended, the only remaining decommissioning is decontamination and dismantlement of the ISFSI (currently estimated at $13.6 million of the current market value balance) once the fuel is removed.

.0 Attachment I to MY RA-10-005 and MN-10-002, page 2 of 2 NRC Decommissioning Funding Status Report Maine Yankee (Status as of 12131/09)3. Any contracts upon which the licensee is relying pursuant to 10 CFR 50.75(e)(1)(ii)(A)

Maine Yankee has collected funds through its power contracts and amendatory agreements under FERC regulation.

The power contracts, additional power contracts and the amendatory agreements specify the obligations of the purchasers for the costs of Maine Yankee, including future decommissioning costs. Such contracts have been filed with FERC.4. Any modifications to a licensee's current method of providing financial assurance occurring since the last submitted report. None 5. Any material changes to trust agreements.

Effective January 1, 2010, CYAPCO changed its Nuclear Decommissioning Fund Trustee from Bank of New York Mellon to Bank of America. Although the Trustee has changed, there were no material changes to the trust agreements.