ML080710307

Request for Additional Information, Spent Fuel Management Plan Pursuant to 10 CFR 50.54(bb)

ML080710307
Person / Time
Site:	Vermont Yankee
Issue date:	03/12/2008
From:	James Kim NRC/NRR/ADRO/DORL/LPLI-1
To:	Balduzzi M Entergy Nuclear Operations
kim J, NRR/ADRO/DORL, 415-4125
References
TAC MD8035
Download: ML080710307 (7)

Text

March 12, 2008 Mr. Michael A. Balduzzi Sr. Vice President & COO Regional Operations, NE Entergy Nuclear Operations, Inc.

440 Hamilton Avenue White Plains, NY 10601

SUBJECT:

REQUEST FOR ADDITIONAL INFORMATION TO SUPPORT THE REVIEW OF THE VERMONT YANKEE NUCLEAR POWER STATION SPENT FUEL MANAGEMNT PLAN PURSUANT TO 10 CFR 50.54(bb) (TAC NO. MD8035)

Dear Mr. Balduzzi:

By letter dated March 21, 2007, Entergy Nuclear Operations, Inc. (the licensee) submitted the Vermont Yankee Nuclear Power Station spent fuel management plan for review.

The Nuclear Regulatory Commission staff has been reviewing the submittal and has determined that additional information is needed to complete its review. The specific questions are found in the enclosed request for additional information (RAI). A response to this RAI is requested to be provided within 30 days.

Sincerely,

/ra/

James Kim, Project Manager Plant Licensing Branch I-1 Division of Operating Reactor Licensing Office of Nuclear Reactor Regulation Docket No. 50-271

Enclosure:

As stated cc w/encl: See next page

ML080710307 OFFICE LPLI-1/PM LPLI-1/LA LPLI-1/BC NAME JKim SLittle MKowal DATE 3/11/08 3/11/08 3/12/08 REQUEST FOR ADDITIONAL INFORMATION BY THE OFFICE OF NUCLEAR REACTOR REGULATION TO SUPPOT THE REVIEW OF THE VERMONT YANKEE NUCLEAR POWER STATION SPENT FUEL MANAGEMENT PLAN RAI No. 1:

Table 2 entitled, Estimated Spent Fuel Management Costs listed expenditures for the period from 2012 - 2017 at an estimated cost of $157 million in 2006 dollars. Describe in detail, the

$157.0 million in expenditures for the period from 2012- 2017. Since Table 2 identified these costs as spent fuel management costs, how are these costs to be funded recognizing the decommissioning trust fund is required by NRC regulation, 10 CFR 50.75, for radiological decommissioning and not for spent fuel management costs or other non-radiological costs?

RAI No. 2 While the submittal identified the expenses associated with spent fuel storage, it did not include in the plan a mechanism for funding for the spent fuel costs. Section 5.2 entitled, Financial Assurance listed the balance in the decommissioning trust fund as of December 31, 2006, as

$416.5 million.

For planning purposes, NRC regulations allow a licensee to take a 2% real rate of return credit on investments unless a higher rate is authorized by a regulated licensees public utility commission. Vermont Yankee (VY) is not rate regulated, so the NRC staff applied a 2% real rate of return on the trust fund balance ($416.5 million) based on the regulation and deducted the expenses identified in Table 3, Estimated Combined License Termination and Spent Fuel Management Costs. The results were that sufficient funds were not available to decommission VY. If the Table 2, Estimated Spent Fuel Management Costs were not included in the staffs analysis, sufficient funds are projected to be available to decommission VY based on the formula amount.

VY makes the statement that even taking out spent fuel expenses, sufficient funds would be available for decommissioning VY based on an after tax rate of return of 5.59% with an inflation rate of 3% or a rate of return of 6.62% with an inflation rate of 4%. In addition to assuming a real rate of return of greater than 2%, does this analysis take into account the $157.0 million spent from 2012 -2017, and the annual costs of approximately $6.2 million for the period 2018-2043. What are the bases for greater than 2% real rate of return, assumed by VY, not withstanding the limit of a 2% real rate set by the applicable regulation?

Enclosure

Vermont Yankee Nuclear Power Station cc:

Regional Administrator, Region I Ms. Carla A. White, RRPT, CHP U. S. Nuclear Regulatory Commission Radiological Health 475 Allendale Road Vermont Department of Health King of Prussia, PA 19406-1415 P.O. Box 70, Drawer #43 108 Cherry Street Mr. David R. Lewis Burlington, VT 05402-0070 Pillsbury, Winthrop, Shaw, Pittman, LLP 2300 N Street, N.W. Ms. Charlene D. Faison Washington, DC 20037-1128 Manager, Licensing Entery Nuclear Operations Mr. David O=Brien, Commissioner 440 Hamilton Avenue Vermont Department of Public Service White Plains, NY 10601 112 State Street Montpelier, VT 05620-2601 Resident Inspector Vermont Yankee Nuclear Power Station Mr. James Volz, Chairman U. S. Nuclear Regulatory Commission Public Service Board P.O. Box 176 State of Vermont Vernon, VT 05354 112 State Street Montpelier, VT 05620-2701 Director, Massachusetts Emergency Management Agency Chairman, Board of Selectmen ATTN: James Muckerheide Town of Vernon 400 Worcester Rd.

P.O. Box 116 Framingham, MA 01702-5399 Vernon, VT 05354-0116 Jonathan M. Block, Esq.

Operating Experience Coordinator Main Street Vermont Yankee Nuclear Power Station P.O. Box 566 320 Governor Hunt Road Putney, VT 05346-0566 Vernon, VT 05354 Mr. John F. McCann G. Dana Bisbee, Esq. Director, Nuclear Safety & Licensing Deputy Attorney General Entergy Nuclear Operations, Inc.

33 Capitol Street 440 Hamilton Avenue Concord, NH 03301-6937 White Plains, NY 10601 Chief, Safety Unit Mr. Michael R. Kansler Office of the Attorney General President & CEO / CNO One Ashburton Place, 19th Floor Entergy Nuclear Operations Boston, MA 02108 1340 Echelon Parkway Jackson, MS 39213

Vermont Yankee Nuclear Power Station cc:

Mr. John T. Herron Mr. Christopher Schwarz Sr. Vice President Vice President, Operations Support Entergy Nuclear Operations, Inc. Entergy Nuclear Operations, Inc.

1340 Echelon Parkway 440 Hamilton Avenue Jackson, MS 39213 White Plains, NY 10601 Mr. William F. Maguire Mr. Michael J. Colomb General Manager, Plant Operations Director of Oversight Entergy Nuclear Operations Entergy Nuclear Operations, Inc.

Vermont Yankee Nuclear Power Station 440 Hamilton Avenue 320 Governor Hunt Road White Plains, NY 10601 Vernon, VT 05354 Mr. William C. Dennis Mr. Oscar Limpias Assistant General Counsel Vice President, Engineering Entergy Nuclear Operations, Inc.

Entergy Nuclear Operations 440 Hamilton Avenue 1340 Echelon Parkway White Plains, NY 10601 Jackson, MS 39213 Mr. Theodore Sullivan Mr. John A. Ventosa Site Vice President GM, Engineering Entergy Nuclear Operations, Inc.

Entergy Nuclear Operations Vermont Yankee Nuclear Power Station 440 Hamilton Avenue P.O. Box 500 White Plains, NY 10601 185 Old Ferry Road Brattleboro, VT 05302-0500 Mr. Joseph P. DeRoy VP, Operations Support Mr. James H. Sniezek Entergy Operations, Inc. 5486 Nithsdale Drive 1340 Echelon Parkway Salisbury, MD 21801 Jackson, MS 39213 Mr. Garrett D. Edwards Mr. John R. Dreyfuss 814 Waverly Road Director, NSA Kennett Square, PA 19348 Entergy Nuclear Operations Vermont Yankee Nuclear Power Station Ms. Stacey M. Lousteau 320 Governor Hunt Road Treasury Department Vernon, VT 05354 Entergy Services, Inc.

639 Loyola Avenue Mr. David J. Mannai New Orleans, LA 70113 Manager, Licensing Entergy Nuclear Operations Vermont Yankee Nuclear Power Station P.O. Box 500 185 Old Ferry Road Brattleboro, VT 05302-0500

Vermont Yankee Nuclear Power Station cc:

Mr. Norman L. Rademacher Director, NSA Vermont Yankee Nuclear Power Station P.O. Box 0500 185 Old Ferry Road Brattleboro, VT 05302-0500 Mr. Raymond Shadis New England Coalition Post Office Box 98 Edgecomb, ME 04556 Mr. James P. Matteau Executive Director Windham Regional Commission 139 Main Street, Suite 505 Brattleboro, VT 05301 Mr. William K. Sherman Vermont Department of Public Service 112 State Street Drawer 20 Montpelier, VT 05620-2601 Mr. Michael D. Lyster 5931 Barclay Lane Naples, FL 34110-7306