RA-11-008, Progress Energy - Evidence of Guarantee of Payment of Deferred Premiums

Progress Energy - Evidence of Guarantee of Payment of Deferred Premiums

ML11111A136
Person / Time
Site:	Harris, Brunswick, Crystal River, Robinson
Issue date:	04/14/2011
From:	Alexander D Progress Energy Co
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
RA-11-008
Download: ML11111A136 (8)

Text

Confidential Financial Information Submitted Under 10 CFR 2.390

,. o esE r 10 CFR 140.2 1(e)

PO Box 1551 411 Fayetteville Street Mall Raleigh NC 27602 Serial: RA- 11-008 April 14, 2011 United States Nuclear Regulatory Commission ATTENTION: Document Control Desk Washington, DC 20555-0001 BRUNSWICK STEAM ELECTRIC PLANT, UNIT NOS. 1 AND 2 DOCKET NOS. 50-325 AND 50-324 / RENEWED LICENSE NOS. DPR-71 AND DPR-62 CRYSTAL RIVER UNIT 3 NUCLEAR GENERATING PLANT DOCKET NO. 50-302 / LICENSE NO. DPR-72 SHEARON HARRIS NUCLEAR POWER PLANT, UNIT NO. 1 DOCKET NO. 50-400 / RENEWED LICENSE NO. NPF-63 H. B. ROBINSON STEAM ELECTRIC PLANT, UNIT NO. 2 DOCKET NO. 50-261 / RENEWED LICENSE NO. DPR-23 EVIDENCE OF GUARANTEE OF PAYMENT OF DEFERRED PREMIUMS Ladies and Gentlemen:

Pursuant to 10 CFR 140.2 1(e), enclosed are 2010 actual and 2011 projected cash flow statements as evidence of guarantee of payment of deferred premiums for the above listed plants belonging to Carolina Power & Light Company (CP&L), now doing business as Progress Energy Carolinas, Inc.,

and Florida Power Corporation (FPC), now doing business as Progress Energy Florida, Inc. provides evidence of guarantee of payment of deferred premiums for the principal owner-licensee and other owners-licensees of the Brunswick Steam Electric Plant, Unit Nos. 1 and 2; Shearon Harris Nuclear Power Plant, Unit No. 1; H. B. Robinson Steam Electric Plant, Unit No. 2; and Crystal River Unit 3 Nuclear Generating Plant. contains information confidential to CP&L and FPC. CP&L and FPC request that the content of Enclosure 1 be withheld from public disclosure in accordance with 10 CFR 2.390(a)(4).

An affidavit supporting the 10 CFR 2.390(a)(4) request is contained in Enclosure 2. A non-confidential version of the projected internal cash flows is contained in Enclosure 3.

This document contains no new regulatory commitment.

If you have additional questions, please call me at (919) 546-5357.

c ly, Donna Alexander Manager - Nuclear Regulatory Affairs (Interim)

Enclosure 1 to this letter contains Confidential Financial Information Submitted Under 10 CFR 2.390

• CVT Upon removal of Enclosure 1, this letter is decontrolled.--

United States Nuclear Regulatory Commission RA-1 1-008 Page 2 DBM Enclosures

1. Evidence of Guarantee of Payment of Deferred Premiums Brunswick Steam Electric Plant, Unit Nos. 1 and 2; Shearon Harris Nuclear Power Plant, Unit No. 1; H. B. Robinson Steam Electric Plant, Unit No. 2; and Crystal River Unit 3 Nuclear Generating Plant (Contains Confidential Financial Information)

2. Affidavit - Request to Withhold Proprietary Information From Public Disclosure

3. Evidence of Guarantee of Payment of Deferred Premiums Brunswick Steam Electric Plant, Unit Nos. 1 and 2; Shearon Harris Nuclear Power Plant, Unit No. 1; H. B. Robinson Steam Electric Plant, Unit No. 2; and Crystal River Unit 3 Nuclear Generating Plant - Redacted Version c: Director - Office of Nuclear Reactor Regulation USNRC - Region II USNRC Resident Inspector - BSEP, Unit Nos. 1 and 2 USNRC Resident Inspector - CR3 USNRC Resident Inspector - SHNPP, Unit No. 1 USNRC Resident Inspector - HBRSEP, Unit No. 2 F. Saba, NRR Project Manager - BSEP, Unit Nos. 1 and 2; CR3 B. Mozafari, NRR Project Manager - SHNPP, Unit No. 1 and HBRSEP, Unit No. 2 Enclosure 1 to this letter contains Confidential Financial Information Submitted Under 10 CFR 2.390 Upon removal of Enclosure 1, this letter is decontrolled.

United States Nuclear Regulatory Commission RA- 11-008 ENCLOSURE 2 AFFIDAVIT REQUEST TO WITHHOLD PROPRIETARY INFORMATION FROM PUBLIC DISCLOSURE

United States Nuclear Regulatory Commission RA-1 1-008 Enclosure 2 Page 1 of 2 REQUEST TO WITHHOLD CONFIDENTIAL FINANCIAL INFORMATION FROM PUBLIC DISCLOSURE UNITED STATES NUCLEAR REGULATORY COMMISSION PROGRESS ENERGY BRUNSWICK STEAM ELECTRIC PLANT, UNIT NOS. I AND 2 DOCKET NOS. 50-325 50-324 CRYSTAL RIVER UNIT 3 NUCLEAR GENERATING PLANT DOCKET NO. 50-302 SHEARON HARRIS NUCLEAR POWER PLANT, UNIT NO. I DOCKET NO. 50-400 H. B. ROBINSON STEAM ELECTRIC PLANT, UNIT NO. 2 DOCKET NO. 50-261 Progress Energy hereby requests that Enclosure I to letter RA-1 1-008 entitled "Evidence of Guarantee of Payment of Deferred Premiums" be withheld from public disclosure due to its confidential nature. The details of this request are provided in the following affidavit:

AFFIDAVIT I, Sherri Green, Treasurer of Progress Energy, do hereby affirm and state as follows:

1. I am an officer of Progress Energy, authorized to execute this affidavit on its behalf. I am further authorized to review information submitted to the Nuclear Regulatory Commission (NRC) and apply for the withholding of information from disclosure.

2. The information sought to be withheld consists of portions of the 2011 Internal Cash Flow Projection that is included in Enclosure I to Progress Energy's letter RA-I 1-008 to the NRC entitled "Evidence of Guarantee of Payment of Deferred Premiums". Enclosure 1, a two page document, has the words "Confidential Financial Information Submitted Under 10 CFR 2.390" on the top and bottom of the pages.

3. Progress Energy is providing information pursuant to 10 CFR 140.21 (e), which constitutes confidential financial information that should be held in confidence by the NRC pursuant to the policy reflected in 10 CFR 2.390(a)(4), because:

i. This information has been held in confidence by Progress Energy.

ii. This information is of a type that is held in confidence by Progress Energy and there is rational basis for doing so because the information contains sensitive financial information concerning Progress Energy net income and internal cash flow.

iii. This information is being transmitted to the NRC in confidence.

iv. This information is not available in public sources and could not be gathered readily from other publicly available information.

v. Public disclosure of this information would create substantial harm to the competitive position of Progress Energy by disclosing Progress Energy's internal financial projections to other parties whose commercial interests may be adverse to those of Progress Energy.

4. Accordingly, Progress Energy requests that the designated documents be withheld from public disclosure pursuant to the policy reflected in 10 CFR 2.390(a)(4).

United States Nuclear Regulatory Commission RA-1 1-008 Page 2 of 2 This letter contains no restricted or other defense information.

PROGRESS ENERGY Sherri L. Green Treasurer 0

NOTARY PUBLIC My Commission expires on UJ

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United States Nuclear Regulatory Commission RA-1 1-008 ENCLOSURE 3 Evidence of Guarantee of Payment of Deferred Premiums Brunswick Steam Electric Plant, Unit Nos. 1 and 2; Shearon Harris Nuclear Power Plant, Unit No. 1; H. B. Robinson Steam Electric Plant, Unit No. 2; and Crystal River Unit 3 Nuclear Generating Plant Redacted Version

NON-PROPRIETARY INFORMATION United States Nuclear Regulatory Commission RA-1 1-008 Page 1 of 2 Carolina Power & Light Company d/b/a Progress Energy Carolinas, Inc.

2011 Internal Cash Flow Projection for H. B. Robinson, Unit 2; Brunswick Units I and 2; Shearon Harris, Unit I (Dollars in Millions)

Year Ended Year Ended December 31, 2010 December 31, 2011 Actual Projected Net Income After Taxes $ 602 Less Dividend Paid (100)

Retained Earnings 502 Adjustments:

Depreciation and Amortization 602 Withheld from Deferred Income Taxes and public disclosure Investment Tax Credits 285 per Affidavit AFUDC (64)

Total Adjustments 823 Internal Cash Flow $ 1,325 Average Quarterly Cash Flow $ 331 Percentage Ownership in Robinson, Brunswick 1 & 2, and Harris plants 100%

• Maximum Total Contingent Liability $ 70.0

• Carolina Power & Light Company d/b/a Progress Energy Carolinas, Inc. is the principal licensee as owner of 100%, 83.83% and 81.67% of the Robinson, Harris, and Brunswick nuclear units, respectively.

This certified cash flow statement is made as of March 21, 2011, and covers all of the owners of these units.

I do certify the above to be correct and accurate.

Sherri L. Green Treasurer Prepared by: K. Long

\CashMgmt\Compliance\2011 NRC Letter\[01-041 NRC_Cash Flow Projection.2011 3-14-1 l.xlsx]PEC 10 NON-PROPRIETARY INFORMATION

NON-PROPRIETARY INFORMATION United States Nuclear Regulatory Commission RA-I 1-008 Page 2 of 2 Florida Power Corporation d/b/a Progress Energy Florida, Inc.

2011 Internal Cash Flow Projection for Crystal River Unit 3 (Dollars in Millions)

Year Ended Year Ended December 31, 2010 December 31, 2011 Actual Projected Net Income After Taxes $ 453 Less Dividend Paid (50)

Retained Earnings 403 Adjustments:

Depreciation and Amortization 446 Withheld from Deferred Income Taxes and public disclosure Investment Tax Credits 324 per Affidavit AFUDC (28)

Total Adjustments 742 Internal Cash Flow $ 1,145 Average Quarterly Cash Flow $ 286 Percentage Ownership in Crystal River Unit No. 3 100%

• Maximum Total Contingent Liability $ 17.5

• Florida Power Corporation d/b/a Progress Energy Florida, Inc. is the principal licensee as owner of 91.8% of the unit.

This certified cash flow statement is made as of March 21, 2011, and covers all of the owners of this unit.

I do certify the above to be correct and accurate.

Sherri L. Green Treasurer Prepared by: K. Longj"

\CashMgmt\ComplianceU201 I NRC Letter\[01-041 NRCCash Flow Projection_2011 3-14-11 .xlsx]PEF I0 NON-PROPRIETARY INFORMATION