ML111950488

the Nuclear Regulatory Commission Staff Spot-Check Review of Tennessee Valley Authority'S One Hundred Percent Ownership Interest of Brown Ferry Nuclear Plant, Unit 3, on July 7, 2011 - Finding of No Potential Issues

ML111950488
Person / Time
Site:	Browns Ferry
Issue date:	07/15/2011
From:	Dusaniwskyj M NRC/NRR/DPR/PFPB
To:	Christopher Regan NRC/NRR/DPR/PFPB
Dusaniwskji M,NRR/DPR, 415-1260
Shared Package
ML111990135	List: ML111950488 ML111990141
References
Download: ML111950488 (3)

Text

July 15, 2011 MEMORANDUM TO: Christopher M. Regan, Chief Financial Analysis and International Projects Branch Division of Policy and Rulemaking Office of Nuclear Reactor Regulation FROM: Michael A. Dusaniwskyj, Financial Analyst /RA/

Financial Analysis and International Projects Branch Division of Policy and Rulemaking Office of Nuclear Reactor Regulation

SUBJECT:

THE NUCLEAR REGULATORY COMMISSION STAFF SPOT-CHECK REVIEW OF TENNESSEE VALLEY AUTHORITYS ONE HUNDRED PERCENT OWNERSHIP INTEREST OF BROWNS FERRY NUCLEAR PLANT, UNIT 3, DOCKET NO. 050-00296 ON JULY 7, 2011 - FINDING OF NO POTENTIAL ISSUES Pursuant to SECY-07-0197 , the Nuclear Regulatory Commission (NRC) staff has been instructed to perform spot-check on licensees to ensure that the amount reported to the NRC in the Biennial Decommissioning Funding Status (BDFS) Report is equivalent to the amount the licensee has in their bank account, as of December 31st of the preceding year. After providing at least 10 days prior notice, the NRC staff, on July 7, 2011, performed the spot-check at 400 West Summit Hill Drive, Knoxville, Tennessee, where the Tennessee Valley Authority holds/receives the original bank statements for Browns Ferry Nuclear Plant, Unit 3 from Bank of New York Mellon.

After the NRC staffs spot-check of Browns Ferry Nuclear Plant, Unit 3 at the location of the original bank statements, the NRC staff found no issues related to the amount reported to the NRC in the 2011 BDFS Report of $142,010,000 and the stated amount in the bank statements dated December 31, 2010.

Because no issues were found in the NRC staffs spot-check of Browns Ferry Nuclear Plant, Unit 2, this memo serves to close out TAC No. ME6533.

CONTACT: Michael A. Dusaniwskyj, NRR/DPR 301-415-1260

ML111950488 OFFICE NRR/DPR/PFIB NAME MDusaniwskyj DATE 7/15/2011

INITIAL ON-SITE FINDINGS OF THE INDEPENDENT REACTOR DECOMMISSIONING TRUST FUND OVERSIGHT ANALYSIS UNIT: ____________________________________________________

LICENSEE: ____________________________________________________

PERCENT OWNERSHIP: ____________________________________________________

LOCATION OF REVIEW: ____________________________________________________

____________________________________________________

LICENSEE CONTACT: ____________________________________________________

ORIGINAL DOCUMENTS VERIFIED TO SHOW TRUST BALANCE IS EQUAL TO ACTUAL TRUST BALANCE CLAIMED IN LAST DECOMMISSIONING FUNDING STATUS REPORT:

[ ] YES [ ] NO ATTACHMENTS PROVIDED: [ ] YES [ ] NO OVERSIGHT REVIEW AND AUDIT FINDINGS:

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

ADDITIONAL COMMENTS:

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

PERFORMED BY: _____________________________

DATE OF REVIEW: _____________________________

MEMORANDUM TO: Christopher M. Regan, Chief Financial Analysis and International Projects Branch Division of Policy and Rulemaking Office of Nuclear Reactor Regulation FROM: Michael A. Dusaniwskyj, Financial Analyst Financial Analysis and International Projects Branch Division of Policy and Rulemaking Office of Nuclear Reactor Regulation

SUBJECT:

THE NUCLEAR REGULATORY COMMISSION STAFF SPOT-CHECK REVIEW OF TENNESSEE VALLEY AUTHORITYS ONE HUNDRED PERCENT OWNERSHIP INTEREST OF BROWNS FERRY NUCLEAR PLANT, UNIT 3, DOCKET NO. 050-00296 ON JULY 7, 2011 - FINDING OF NO POTENTIAL ISSUES Pursuant to SECY-07-0197 , the Nuclear Regulatory Commission (NRC) staff has been instructed to perform spot-check on licensees to ensure that the amount reported to the NRC in the Biennial Decommissioning Funding Status (BDFS) Report is equivalent to the amount the licensee has in their bank account, as of December 31st of the preceding year. After providing at least 10 days prior notice, the NRC staff, on July 7, 2011, performed the spot-check at 400 West Summit Hill Drive, Knoxville, Tennessee, where the Tennessee Valley Authority holds/receives the original bank statements for Browns Ferry Nuclear Plant, Unit 3 from Bank of New York Mellon.

After the NRC staffs spot-check of Browns Ferry Nuclear Plant, Unit 3 at the location of the original bank statements, the NRC staff found no issues related to the amount reported to the NRC in the 2011 BDFS Report of $142,010,000 and the stated amount in the bank statements dated December 31, 2010.

Because no issues were found in the NRC staffs spot-check of Browns Ferry Nuclear Plant, Unit 2, this memo serves to close out TAC No. ME6533.

CONTACT: Michael A. Dusaniwskyj, NRR/DPR 301-415-1260

TO: [BRANCH CHIEF], Chief Financial Analysis and International Projects Branch Division of Policy and Rulemaking FROM: [STAFF REVIEWER]

Financial Analysis and International Projects Branch Division of Policy and Rulemaking

SUBJECT:

NRC STAFF SPOT-CHECK REVIEW OF [LICENSEE]S [PERCENTAGE OWNERSHIP] OWNERSHIP INTEREST OF [NUCLEAR POWER PLANT(S)

AND DOCKET NOS.] ON [DATE] - FINDING OF POTENTIAL ISSUES Pursuant to SECY-07-0197 , the Nuclear Regulatory Commission (NRC) staff has been instructed to perform spot-check on licensees to ensure that the amount reported to the NRC in the Decommissioning Funding Status (DFS) Report is equivalent to the amount the licensee has in their bank account, as of December 31 of the preceding year. After providing at least 10 days prior notice, the NRC Staff, on [DATE], performed the spot-check at [LOCATION OF INFORMATION], where [LICENSEE] holds/receives the original bank statements for

[NUCLEAR POWER PLANT(S)] from [NAME OF TRUSTEE]. [PROVIDE ANY UNIQUE INFORMATION - E.G. KEEP INFORMATION AT ANOTHER LICENSEES LOCATION/OTHER LICENSEE IS RESPONSIBLE FOR REPORTING TO NRC]

After the NRC staffs spot-check of [NUCLEAR POWER PLANT(S)] at the location of the original bank statements, the NRC staff found potential issues related to the amount reported to the NRC in the [YEAR] DFS Report of [AMOUNT REPORTED TO THE NRC] and the stated amount in the bank statements dated December 31, [YEAR]. The bank statements of

[LICENSEE] [were/were not] divided between [NUMBER] qualified bank account(s) and

[NUMBER] non-qualified bank account(s). The total of all of the accounts is not equivalent to the amount provided to the NRC in the [YEAR] DFS Report.

[IF COMMINGLING] [LICENSEE] provided the NRC staff with documentation of the breakdown of the commingling of funds, allowed by the NRC to prevent unnecessary costs to the licensee, within the qualified and non-qualified bank accounts. [LICENSEE] provided the NRC staff with the distribution between radiological and non-radiological as [AMOUNT/PERCENTAGE OF RADIOLOGICAL] and [AMOUNT/PERCENTAGE OF NON-RADIOLOGICAL], respectively. The internal documentation provides that the amount designated to the NRC for radiological decommissioning in the December 31, [YEAR] bank statement is not equivalent to the amount reported to the NRC in the DFS Report. The total discrepancy between the amount provided as NRC radiological funds and the amount reported to the NRC in the DFS report is [INSERT DIFFERENCE].

During the meeting with [LICENSEE], the NRC staff member noted the discrepancy in their findings. [MENTION ANY INTERACTION BETWEEN NRC STAFF AND LICENSEE IN RELATION TO EXPLANATION OF DISCREPANCY]

Because potential issues were found in the NRC staffs spot-check of [NUCLEAR POWER PLANTS], further action may be required.