ML12354A058

Independent Spent Fuel Storage Installation, Additional Information Regarding Application for Order Approving Indirect and Internal Transfer

ML12354A058
Person / Time
Site:	Comanche Peak
Issue date:	12/05/2012
From:	Flores R, Madden F W Luminant Generation Co
To:	Document Control Desk, Office of Nuclear Material Safety and Safeguards, Office of Nuclear Reactor Regulation
References
CP-201201456, TAC ME9767, TAC ME9768, TXX-12184
Download: ML12354A058 (8)

Text

ENCLOSURE 1 (PROPRIETARY)

CONTAINS PROPRIETARY INFORMATION SUBMITTED UNDER 10 CFR 2.390 WITHHOLD FROM PUBLIC DISCLOSURE Rafael Flores Luminant Power Senior Vice President P 0 Box 1002& Chief Nuclear Officer 6322 North FM 56 rafael.flores@Luminant.com Glen Rose, TX 76043 Luminant T 254 897 5550 C 817 559 0403 F 254 897 6652 CP-201201456 10 CFR 50.80 TXX-12184 10 CFR 72.50(a)10 CFR 2.390 December 5, 2012 U.S. Nuclear Regulatory Commission Attention:

Document Control Desk Director, Office of Nuclear Reactor Regulation Washington, DC 20555

SUBJECT:

Comanche Peak Nuclear Power Plant (CPNPP) and Independent Spent Fuel Storage Installation (ISFSI), Docket Nos. 50-445, 50-446, 72-74 Additional Information Regarding Application for Order Approving Indirect and Internal Transfer of Licenses (CPNPP Unit 1 Operating License (NPF-87) and CPNPP Unit 2 Operating License (NPF-89), and General License under Docket Number 72-74) (TAC NOS. ME9767 and ME9768)

REFERENCE:

1. Luminant Power Letter logged TXX-12149 from Rafael Flores to the NRC dated October 11, 2012, Application for Order Approving Indirect and Internal Transfer of Licenses (CPNPP Unit 1 Operating License (NPF-87), CPNPP Unit 2 Operating License (NPF-89)2. Luminant Power Letter logged TXX-12161 from Rafael Flores to the NRC dated October 24, 2012, Additional Information Regarding Application for Order Approving Indirect and Internal Transfer of Licenses (CPNPP Unit 1 Operating License (NPF-87), CPNPP Unit 2 Operating License (NPF-89)3. Luminant Power Letter logged TXX-12181 from Rafael Flores to the NRC dated November 26, 2012, Additional Information Regarding Application for Order Approving Indirect and Internal Transfer of Licenses (CPNPP Unit 1 Operating License (NPF-87), CPNPP Unit 2 Operating License (NPF-89)

Dear Sir or Madam:

Luminant Generation Company LLC ("Luminrant Power"), acting on behalf of Energy Future Holdings Corp. ("EFH"), Energy Future Competitive Holdings Company ("EFCH"), Texas Competitive Electric Holdings Company LLC, and Luminant Holding Company LLC, hereby submits additional information in connection with the indirect transfer of licenses requested in Reference 1.Section III.J of Enclosure 1 Application of Reference 1, noted "The proposed transaction does not affect the Independent Spent Fuel Storage Installation (ISFSI) general license issued for the storage of spent fuel at CPNPP pursuant to Subpart K of 10 CFR 50.72." The last part of this sentence should reference "10 CFR 72" not "10 CFR 50.72." Additionally, Luminant Power notes that the project costs for the CPNPP A member of the STARS Alliance Callaway .Comanche Peak

• Diablo Canyon

• Palo Verde -San Onofre

• South Texas Project

• Wolf Creek Ad"~

U.S. Nuclear Regulatory Commission TXX-12184 Page 2 of 3 12/05/2012 ISFSI that are incurred by Luminant Power are accounted for in both the historical (Enclosure 1 (Proprietary) to Reference

3) and projected (Enclosure 1 Addendum Exhibit D (Proprietary) to Reference 1) financial information documents.

A relatively small amount of the CPNPP ISFSI costs (less than 1%) are considered operations and maintenance expenses in the forecast period, and these CPNPP ISFSI costs are included in the"Operations

& Maintenance Expense" line items in the projections for the Comanche Peak Units provided in Enclosure 1 Addendum Exhibit D (Proprietary) of Reference

1. The vast majority of the CPNPP ISFSI costs is considered capital expenditures, and therefore is not included as "Operations

&Maintenance Expense" in the income statements.

The net cash costs of the ISFSI costs are included in the"Other Existing Asset Capital Expenditures" in the Cash Flow Statement of the projections.

Moreover, the majority of these CPNPP ISFSI capital expenditures are being recovered each year from the U.S.Department of Energy pursuant a settlement of claims for damages in connection with the "Contract for Disposal of Spent Nuclear Fuel and/or High-level Radioactive Waste" for CPNPP. Due to the expected reimbursement of the majority of these capital expenses, they are not forecast to have a material impact on Luninant Power's Consolidated Balance Sheet, which is provided in Enclosure 1 Addendum Exhibit D (Proprietary) of Reference

1. In summary, the CPNPP ISFSI costs, both O&M and capital, are accounted for in the financial projections, but they have very little actual impact on the projections.

Luminant Power's last biennial 50.75(f) report (Accession number ML110960274) and an update to that report (Reference

2) provides information regarding the Site Specific Cost Estimate for the decommissioning of CPNPP, and this estimate includes costs associated with the decommissioning of the CPNPP ISFSI.Luminant Power is providing updated historical and projected financial information in Enclosure 1 to clarify revenues provided in References 1 and 3. Enclosure 1 provides additional background information regarding certain revenues that result from activities other than nuclear and non-nuclear electric power generation.

The requested information includes proprietary, separately bound Enclosure 1 Exhibit A (Proprietary), which contains confidential commercial or financial information.

Luminant Power, EFH, EFCH, Texas Competitive Electric Holdings Company LLC, and Luminant Holding Company LLC request that Enclosure 1 (Proprietary) be withheld from public disclosure pursuant to 10 CFR 9.17(a)(4) and the policy reflected in 10 CFR 2.390(a)(4), as described in the Affidavit of Fred W. Madden, which is provided in Enclosure 1 to the Application.

A non-proprietary version of Enclosure 1 (Non-Proprietary) suitable for public disclosure is provided in the Application.

If the NRC requires additional information concerning this license transfer, please contact Fred Madden, Director Oversight and Regulatory Affairs, Luminant Power, tel: (254) 897-8601 and email: Fred.Madden@luminant.com.

U.S. Nuclear Regulatory Commission TXX-12184 Page 3 of 3 12/05/2012 This letter contains no new licensing basis commitments regarding Comanche Peak Nuclear Power Plant Units 1 and 2.Sincerely, Luminant Generation Company LLC Rafael Flores Fred W. Madden Director, Oversight and Regulatory Affairs Affirmation Affidavit Enclosure 1 c -w/o proprietary Enclosure 1 except * (paper copy)E. J. Leeds, Director, Office of Nuclear Reactor Regulation E. E. Collins, Region IV* B. K. Singal, NRR Resident Inspectors, Comanche Peak Affirmation to TXX-12184 Page 1 of 1 Affirmation I, Fred W. Madden, being duly sworn, state that I am the Director, Oversight and Regulatory Affairs for Comanche Peak Nuclear Power Plant, Luminant Generation Company LLC ("Luminant Power"), that I am authorized to sign and file this Application with the Nuclear Regulatory Commission on behalf of Luminant Power and its affiliates, and that the statements made and the matters set forth herein pertaining to Luminant Power and its affiliates are true and correct to the best of my knowledge, information, and belief.Luminant Generation Company LLC red .Madden Director, Oversight and Regulatory Affairs STATE COUNTY Subscribed and sworn to before me, a Notary Public, in and for the and S ate above named, this 5th day of December 2012.JANICE STOKES MY COMMISSION Ii M Co ission Expires: FEBRUARY 19, 2013 I Affidavit to TXX- 12184 TXX-12184 Page 1 of 2 10 CFR 2.390 AFFIDAVIT OF FRED W. MADDEN I, Fred W. Madden, Director, Oversight and Regulatory Affairs state that: 1. I am authorized to execute this affidavit on behalf of Luminant Generation Company LLC ("Luminant Power") and its affiliates.

2. Luminant Power is providing information in support of its "Application for Order Approving Indirect Transfer of Licenses." The Proprietary Version of Enclosure 1 being provided in this submittal contain financial pro forma statements related to revenues from sales of energy and capacity from Comanche Peak Nuclear Power Plant (CPNPP) and confidential information regarding anticipated assets, liabilities and capital structure at the time of transfer.

These documents constitute proprietary commercial and financial information that should be held in confidence by the NRC pursuant to the policy reflected in 10 CFR 2.390(a)(4) and 9.17(a)(4), because: a. This information is and has been held in confidence by Luminant Power and its affiliates.

b. This information is of a type that is held in confidence by Luminant Power and its affiliates, and there is a rational basis for doing so because the information contains sensitive financial competitive information concerning Luminant Power affiliates' anticipated revenues and operating expenses.c. This information is being transmitted to the NRC in confidence.

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

e. Public disclosure of this information would create substantial harm to the competitive position of Luminant Power by disclosing its internal financial pro forma statements and the commercial terms of a unique transaction to other parties whose commercial interests may be adverse to those of Luminant Power.

Affidavit to TXX-12184 TXX-12184 Page 2 of 2 3. Accordingly, Luminant Power requests that the designated documents be withheld from public disclosure pursuant to the policy reflected in 10 CFR 2.390(a)(4) and 9.17(a)(4).

Luminant Generation Company LLC e/Pi~d W. Madden'Director, Oversight and Regulatory Affairs SCTAT OFUNT COUNTY Subscribed and sworn to me, a Notary Public, in and for the County and State 5th day of December 2012.JANICE S KES ission"y COMANSSIONj EXPiRES FEBRU&J~y

19. 2013 Enclosure 1 (Non-Proprietary)

TXX-12184 Page 1 of 2 Page 8 -Luminant Power: Base Case Other deregulated revenue included in the table below bridges the Revenue Summary on p. 8 with the Income Statement Revenues shown on p. 7 of document TXX-12149 Enclosure 1 Addendum Exhibit D (Proprietary)

COMPOSITION OF REVENUE PROJECTIONS 2013 E 2014 E 2015 E 2016 E 2017 E Revenue summary Other deregulated revenues[$ MM]Page 10 -Luminant Holding: Base Case Other deregulated revenue and hedge revenue included in the table below bridges the Revenue Summary on p. 10 with the Income Statement Revenues shown on p. 9 of document TXX-12149 Enclosure 1 Addendum Exhibit D (Proprietary)

COMPOSITION OF REVENUE PROJECTIONS 2013 E 2014 E 2015 E 2016 E 2017 E Revenue summary Other deregulated revenues [$ MM]Hedge revenue [$ MM]Page 15 -Luminant Power: Capacity Factor Case Other deregulated revenue included in the table below bridges the Revenue Summary on p. 15 with the Income Statement Revenues shown on p. 14 of document TXX-12149 Enclosure 1 Addendum Exhibit D (Proprietary)

COMPOSITION OF REVENUE PROJECTIONS 2013 E 2014 E 2015 E 2016 E 2017 E Revenue summary Other deregulated revenues [$ MM]Page 17 -Luminant Holding: Capacity Factor Case Other deregulated revenue and hedge revenue included in the table below bridges the Revenue Summary on p. 17 with the Income Statement Revenues shown on p. 16 of document TXX-12149 Enclosure 1 Addendum Exhibit D (Proprietary)

COMPOSITION OF REVENUE PROJECTIONS 2013 E 2014 E 2015 E 2016 E 2017 E Revenue summary Other deregulated revenues [$ MM]Hedge revenue [$ MM]Page 22 -Luminant Power: Power Price Case Other deregulated revenue included in the table below bridges the Revenue Summary on p. 22 with the Income Statement Revenues shown on p. 21 of document TXX-12149 Enclosure 1 Addendum Exhibit D (Proprietary)

COMPOSITION OF REVENUE PROJECTIONS 2013 E 2014 E 2015 E 2016 E 2017 E Revenue summary Other deregulated revenues [$ MM]Page 24 -Luminant Holding: Power Price Case Other deregulated revenue and hedge revenue included in the table below bridges the Revenue Summary on p. 24 with the Income Statement Revenues shown on p. 23 of document TXX-12149 Enclosure 1 Addendum Exhibit D (Proprietary)

COMPOSITION OF REVENUE PROJECTIONS 2013 E 2014 E 2015 E Revenue summary 2016 E 2017 E Other deregulated revenues Hedge revenue[$ MM][$ MM]

Enclosure 1 (Non-Proprietary)

TXX-12184 Page 2 of 2 Page 4 -Luminant Power Other deregulated revenue included in the table below bridges the Revenue Summary on p. 4 with the Income Statement Revenues shown on p. 3 of document TXX-12181 Enclosure 1 (Proprietary)

YTD Sept.COMPOSITION OF REVENUE PROJECTIONS 2011 A 2012A Revenue summary Other deregulated revenues [$ MM]Page 6 -Luminant Holding Other deregulated revenue and hedge revenue included in the table below bridges the Revenue Summary on p. 6 with the Income Statement Revenues shown on p. 5 of document TXX-12181 Enclosure 1 (Proprietary)

YTD Sept.COMPOSITION OF REVENUE PROJECTIONS 2011 A 2012A Revenue summary Other deregulated revenues [$ MM]Hedge revenue [$ MM]