ML112210023

Enclosuthird RAI Related to Application for NRC Consent/Threshold Determination for Indirect License Transfer Related to Merger of Northeast Utilities and Nstar

ML112210023
Person / Time
Site:	Haddam Neck, Yankee Rowe, Maine Yankee
Issue date:	08/05/2011
From:	Kristina Banovac NRC/NMSS/SFST/LID/LB
To:	Norton W Maine Yankee Atomic Power Co
Banovac K NMSS/SFST 492-3571
Shared Package
ML112170432	List: ML112210017 ML112210023
References
TAC L24496, TAC L24497, TAC L24498
Download: ML112210023 (4)

Text

MAINE YANKEE ATOMIC POWER COMPANY CONNECTICUT YANKEE ATOMIC POWER COMPANY YANKEE ATOMIC ELECTRIC COMPANY DOCKET NOS. 50-309, 50-213,50-029, 72-30, 72-39, AND 72-31 THIRD REQUEST FOR ADDITIONAL INFORMATION RELATED TO APPLICATION FOR NRC CONSENT/THRESHOLD DETERMINATION FOR INDIRECT LICENSE TRANSFER RELATED TO MERGER OF NORTHEAST UTILITIES AND NSTAR Request for Additional Information:

1. Trust Funds for Radiological Decommissioning vs. Spent Fuel For Maine Yankee Atomic Power Company (MY), Connecticut Yankee Atomic Power Company (CY) and Yankee Atomic Electric Company (Yankee Rowe (YR)), indicate if funds for spent fuel maintenance and storage (as required by 10 CFR 50.54(bb)) are maintained in a fund separate from the decommissioning trust fund. Also, indicate the system of subaccounts used to separate decommissioning funds from other funds in commingled accounts.

Regulatory Basis:

Per Reg. Guide 1.184, Decommissioning of Nuclear Power Reactors, amounts set aside for radiological decommissioning, as required by 10 CFR 50.75, should not be used for: the maintenance and storage of spent fuel in the spent fuel pool; the design or construction of spent fuel dry storage facilities; or other activities not directly related to the long-term storage, radiological decontamination or dismantlement of the facility, or decontamination of the site.

Per 10 CFR 50.82(a)(8) and 50.82(a)(8)(i)(A), expenditures from the decommissioning trust fund are allowed for decommissioning as currently defined in 10 CFR 50.2, and withdrawals from decommissioning trust funds are limited to legitimate decommissioning activities consistent with the definition of decommissioning.

Pursuant to 10 CFR 50.75(e)(2), the NRC reserves the right to review the accumulation of decommissioning funds.

2. Withdrawals from the Decommissioning Trust Fund For MY, CY, and YR, explain how the actual and projected expenditures from the decommissioning trust fund, which are listed in Attachments A through H of the request for additional information (RAI) response dated June 8, 2011 (ML11166A124), are for legitimate Enclosure

decommissioning activities consistent with the definition of decommissioning in 10 CFR 50.2, with particular attention to the expenses listed in the tables below.

a. Connecticut Yankee These expenses were listed in Attachment A, pgs. 1-4, of the RAI response dated June 8, 2011 (ML11166A124), as follows:

Row Description Annual Cost 14 Morris Spent Fuel 1,755,089 11 Travel Expenses 42,666 50 Community Relations 26,300 58 DOE Litigation 1,096,000 69 Consulting Services 64,170 115 Vehicles Corporate 43,429 In Attachment A, Page 1, of the RAI response dated June 8, 2011, the licensee provided a table of annual decommissioning costs for 2010 for a total of $11.7 million. The licensee then provided a line item breakdown of each cost in part 2 of Attachment A, pages 1-4.

Further, in Attachment C of the RAI response dated June 8, 2011, the licensee provided a table of actual expenses from the CY trust fund, for the period of 2005-April 2011.

b. Yankee Rowe These expenses were listed in Attachment B of the RAI response dated June 8, 2011, as follows:

Row Description Year/Cost 2 DOE Litigation 1,096,931 (2014) 1 FERC Rate Case Legal 548,465 (2010) 27 High Speed Internet 15,526 (2010)

In Attachment E of the RAI response dated June 8, 2011, the licensee provided a table of actual expenses from the YR trust fund, for the period of 2005-April 2011.

c. Maine Yankee These expenses were listed in Attachment H of the RAI response dated June 8, 2011 (ML11166A124), as follows:

Row Description Year/Cost BSOP Meals 2,627 (2008)

EXEC Travel 10,506 (2008)

BSOP Business Auto 2,101 (2008)

BSOP FERC Rate Case 525,313 (2008)

In Attachment D of the RAI response dated June 8, 2011, the licensee provided a table of actual expenses from the MY trust fund, for the period of 2005-April 2011.

Regulatory Basis:

Reg. Guide 1.184, Decommissioning of Nuclear Power Reactors, states that funds set aside for radiological decommissioning, as required by 10 CFR 50.75, should not be used for: the maintenance and storage of spent fuel in the spent fuel pool; the design or construction of spent fuel dry storage facilities; or other activities not directly related to the long-term storage, radiological decontamination or dismantlement of the facility, or decontamination of the site.

Per 10 CFR 50.82(a)(8) and 50.82(a)(8)(i)(A), expenditures from the decommissioning trust fund are allowed for decommissioning as currently defined in 10 CFR 50.2, and withdrawals from decommissioning trust funds are limited to legitimate decommissioning activities consistent with the definition of decommissioning.

Pursuant to 10 CFR 50.75(e)(2), the NRC reserves the right to review the accumulation of decommissioning funds.

This information is required to evaluate compliance with 10 CFR 50.75 and 50.82.

3. Connecticut Yankee - Summary of Expenses Provide the supporting calculations and further clarification for the end of year balance listed for the year 2011 for spreadsheet 1 on page 2 of Enclosure 1, of the RAI response dated June 8, 2011. The total shown for the end of year balance is $206.4 million. Based on your March 15, 2011 submission (ML110810111), the end of year 2010 balance for the CY decommissioning trust fund was $197.2 million. However, the staff notes a discrepancy between the 2011 end of year balance reported ($206.4M) and the 2011 end of year balance based on the values submitted ($235.7M).

Please clarify the end of year 2011 fund balance.

Description Total ($ millions)

Fund balance Dec. 31, 2010 197.2 Less Spent Fuel Expense (10.8)

Earnings on Trust Fund 8.3 Collections deposited in trust fund 40.9 Total End of Year 2011 235.7 Regulatory Basis:

Per 10 CFR 50.82(a)(8) and 50.82(a)(8)(i)(A), expenditures from the decommissioning trust fund are allowed for decommissioning as currently defined in 10 CFR 50.2, and withdrawals from decommissioning trust funds are limited to legitimate decommissioning activities consistent with the definition of decommissioning.

Pursuant to 10 CFR 50.75(e)(2), the NRC reserves the right to review the accumulation of decommissioning funds.

This information is required to evaluate compliance with 10 CFR 50.75 and 50.82.

4. Connecticut Yankee - Decommissioning Funding Assurance Based on the information submitted by the licensee, in the RAI response dated June 8, 2011, CY has a potential shortfall in decommissioning funding of $5.66 million, beginning in 2023, listed on spreadsheet 1 on page 2 of Enclosure 1. Provide further information regarding total expenses from the decommissioning trust and projected future collections in sufficient detail for the staff to determine if there is reasonable assurance that sufficient funds will be available for decommissioning.

Regulatory Basis:

Per 10 CFR 50.82(a)(8)(i)(C), withdrawals are not permitted if they would inhibit the ability of the licensee to complete funding of any shortfalls in the decommissioning trust needed to ensure the availability of funds to ultimately release the site and terminate the license.

This information is required to evaluate compliance with 10 CFR 50.75 and 50.82.

5. Yankee Rowe - Summary of Expenses Provide the supporting calculations and further clarification for the end of year balance listed for the year 2011 for spreadsheet 2 on page 2 of Enclosure 1, in the RAI response dated June 8, 2011. The total shown for the end of year balance for 2011 is $46.1 million. Based on your March 15, 2011, submission (ML110810115), the end of year 2010 balance for the YR decommissioning trust fund was $95.6 million. However, the staff notes a discrepancy between the 2011 end of year balance reported ($46M) and the 2011 end of year balance based on the values submitted ($102.1M).

Please clarify the end of year balance for 2011.

Description Total ($ millions)

Fund balance Dec. 31, 2010 95.6 Less Spent Fuel Expense (7.1)

Earnings on Trust Fund 1.8 Collections deposited in trust fund 11.8 Total End of Year 2011 102.1 Regulatory Basis:

Per 10 CFR 50.82(a)(8) and 50.82(a)(8)(i)(A), expenditures from the decommissioning trust fund are allowed for decommissioning as currently defined in 10 CFR 50.2, and withdrawals from decommissioning trust funds are limited to legitimate decommissioning activities consistent with the definition of decommissioning.

Pursuant to 10 CFR 50.75(e)(2), the NRC reserves the right to review the accumulation of decommissioning funds.

This information is required to evaluate compliance with 10 CFR 50.75 and 50.82.