ML111600226: Difference between revisions

From kanterella
Jump to navigation Jump to search
(Created page by program invented by StriderTol)
(Created page by program invented by StriderTol)
 
(4 intermediate revisions by the same user not shown)
Line 1: Line 1:
{{Adams
#REDIRECT [[L-05-080, Exhibit D (Part 4): Excerpt from the Beaver Valley and Perry 2005 License Transfer Application]]
| number = ML111600226
| issue date = 06/13/2011
| title = Exhibit D (Part 4): Excerpt from the Beaver Valley and Perry 2005 License Transfer Application
| author name =
| author affiliation = FirstEnergy Nuclear Operating Co
| addressee name =
| addressee affiliation = NRC/NRR/DPR
| docket = 05000334, 05000412, 05000440
| license number =
| contact person = Fredrichs, T L, NRR/DPR, 415-5971
| case reference number = L-05-080, PY-CEI/NRR-2880L
| package number = ML111600168
| document type = - No Document Type Applies
| page count = 3
}}
 
=Text=
{{#Wiki_filter:Enclosure 1 L-05-080 PY-CELINRR-2880L Page 13 Accordingly, the use of a dual unit outage of both BVPS units for one year as a benchmark for the funding agreement is an appropriate assumption for purposes of meeting the criteria in the Standard Review Plan. Finally, the remaining affiliate owners of the BVPS and Perry units remain responsible to provide their pro rata shares of capital and operating costs in the event of any such shutdown.G. Decommissioning Funding At the time of the transfer, all of the decommissioning funds in Penn Power's Nuclear Decommissioning Trusts ("NDTs") will be transferred to FENGenCo.
These NDTs had a market value of approximately
$143 million as of December 31, 2004, and additional contributions are planned for 2005. Therefore, FENOC expects that the market value of the NDTs will be at least $140 million at the time of the transfer.
The FENGenCo NDTs will be held in external trust funds segregated from FENGenCo's assets and outside its administrative control. The funds will be governed by a Master NDT Agreement with Mellon Bank NA as Trustee, and the terms of that agreement will comply with the requirements of 10 CFR 50.75(h)(1).
A form of the "Master Nuclear Decommissioning Trust Agreement" incorporating the terms required by 10 CFR 50.75(h)(1) is provided as Exhibit J.The NRC minimum amounts of decommissioning funding assurance required for BVPS and Perry, calculated pursuant to 10 CFR 50.75(c) (the "formula amount"), are provided for each unit in Exhibit K, Attachments 1, 2, and 3. The current trust fund balances and anticipated contributions for 2005, with credit for earnings taken into account using a 2 percent real rate of return, are insufficient to be considered fully "prepaid" for purposes of using the "prepayment" method specified in 10 CFR 50.75(e)(1)(i).
Enclosure 1 L-05-080 PY-CEI/NRR-2880L Page 14 Below is a table summarizing for each plant the current: (1) Penn Power's ownership interest (being transferred to FENGenCo);
(2) the current Penn Power trust fund balance (being transferred to FENGenCo);
(3) the current shortfall; (4) the amount required (when earnings are credited using a 2% real rate of return) to be considered fully "prepaid;" and (5) FENGenCo's pro rata share of the NRC minimum decommissioning amount.Decommissioning Funding Summary ($in million)Penn Trust Balance Current Pre-Paid Amount FENGenCo Power's (12/31/2004)
Shortfall Required Share of NRC Plant (Credit for Earnings)
Min.Share BVPS 1 65% $108.1 $66.8 $174.9 $231.9 BVPS 2 13.74% $25.3 $4.5 $29.8 $49.0 Perry 5.24% $9.7 $5.5 $15.2 $24.3 Total $143.1 $76.8 $219.9 $305.2 The transferred balances of approximately
$140 million are approximately
$80 million less than the $220 million required to be considered fully pre-paid.
Therefore, FENGenCo will provide additional decommissioning funding assurance by obtaining a parent guarantee, as -permitted by 10 CFR 50.75(e)(1)(iii), from FirstEnergy in the initial amount of $80 million (in year 2005 dollars).
FENGenCo will re-calculate the required decommissioning funding assurance levels each year, as required by 10 CFR 50.75(b)(2), and if necessary, each year it will either obtain an appropriate adjustment in the amount of the parent company guarantee or otherwise provide for decommissioning funding assurance in the amounts required.
Exhibit L provides a worksheet demonstrating compliance with the NRC's financial test for parent guarantees, in accordance with 10 CFR 50.75(e)(1)(iii)(C) and 10 CFR Part 30, Appendix A.
Enclosure 1 L-05-080 PY-CEI/NRR-2880L Page 15 FENGenCo has chosen to demonstrate compliance using the test in section II.A.2 of Appendix A. The form of the guarantee is provided as Exhibit M.In addition, FENGenCo expects to receive additional funding for decommissioning in the amount of $80 million from Penn Power and/or other affiliates within the next five years.FENGenCo will maintain these funds in its NDTs. In any event, the existing trust funds combined with the parent company guarantee in the amount of $80 million provide reasonable assurance that funds will be available to FENGenCo to pay for its share of the decommissioning costs attributable to the interests being transferred to it, in accordance with the requirements of 10 CFR 50.75. This provides the required financial assurance for the funding of FENGenCo's decommissioning obligations in connection with the transferred plant interests.
It is expected that when FENGenCo's NDTs have achieved higher funding levels, from funds made available by Penn Power and other sources, as well as earnings and appreciation from NDT investments, the parent company guarantee will be reduced to a lower amount or eliminated, as appropriate.
H. No Antitrust Considerations In accordance with the Commission's decision in Kansas Gas and Electric Company (Wolf Creek Generating Station, Unit 1), CLI-99-19, 49 N.R.C. 441 (1999), antitrust reviews of license transfer applications after initial licensing are not required by the AEA. The existing antitrust conditions in the licenses will continue in effect.I. Nuclear Insurance In accordance with Art. IV.2 of the NRC Price-Anderson Indemnity Agreement for BVPS and Perry, the Applicant requests NRC approval of the assignment and transfer of Penn Power's}}

Latest revision as of 19:48, 12 November 2019

Redirect to:

Retrieved from "https://kanterella.com/w/index.php?title=ML111600226&oldid=2116744"