ML20247M392

Informs That Initial Review of Decommissioning Funding Assurance Program Completed.Comments on Util Reponse Encl Need to Be Resolved in Order for NRC to Determine That Terms of Commission Decision Met

ML20247M392
Person / Time
Site:	Seabrook
Issue date:	03/31/1989
From:	Varga S Office of Nuclear Reactor Regulation
To:	Ellen Brown PUBLIC SERVICE CO. OF NEW HAMPSHIRE
References
NUDOCS 8904060046
Download: ML20247M392 (4)

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March 31,1989 l7 k-Docket Nd. 50-443 Mr. Edward Brown President & Chief Executive Officer New Hampshire Yankee Division l

Public Service Company of New l

Hampshire Post Office Box 300 l

Seabrook, New Hampshire 03874

SUBJECT:

DECOMMISSIONING FUNDING ASSURANCE We have completed our initial review of your decommissioning funding assurance program provided by your letter dated March 20, 1989. This was in response to the Comission decision (CLI-88-10), dated December 21, 1988, requiring the applicants to provide assurance that $72.1 million be available to meet the decommissioning costs for Sehbrook Station Unli: 1 in thr event a full power operating license is not granted after low-power testing has been performed.

The Commission decision required the Staff to notify the Commission after the applicants have satisfied the Staff that all the decommissioning terms of the Commission decision are met. The Staff has concluded, based on its review of your March 20, 1989 submittal, that the matters presented in the enclosure need to be resolved by the Applicants in order for the Staff to determine that the terms of the Comission decision are met.

We would be pleased to schedule a meeting should you wish to discuss this matter with the Staff. Please contact Victor Nerses, the Seabrook Pro,iect Manager (301-492-1441), if you have any questions.

Sincerely, Original signed by:

Steven A. Varga, Acting Associate Director for Proiects Office of Nuclear Reactor Regulation

Enclosure:

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Edw&rd A. Brown Seabrook Nuclear Power Station Public Service Company of New Hampshire l

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Thomas Dignan,.Esq.

E. Tupper Kinder, Esq.

John A. Ritscher, Esq.

G. Dana Bisbee, Esq.

Ropes and Gray Assistant Attorney General 225 Franklin Street Office of Attorney General Boston, Massachusetts 02110 208 State House Annex Concord, New Hampshire 03301 Mr. Bruce B. Beckley, Project Manager

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Public Service Company of New Hampshire Resident Inspector Post Office Box 330-US Nuclear Regulatory Commission Manchester, New Hampshire 03105 Post Office Box 1149 Seabrook, New Hampshire 03874 D.r. Mauray Tye, President Sun Valley Association Mr. A. M. Ebner, Project Manager 209 Summer Street United Engineers & Constructors Haverhill, Massachusetts 01830 Post Office. Box 8223 Philadelphia, Pennsylvania 19101 Robert Backus, Esq.

Backus, Meyer and Solomon Steven Oleskey, Esq.

116 Lowell Street Office of the Attorney General Manchester, New Hampshire 03106 One Ashburton Place P.O. Box 330 Diane Curran, Esq.

Boston, Massachusetts 02108 Harmon and Weiss-2001 S Street, NW Carol S. Sneider, Esq.

Suite 430 Office of the Assistant attorney General Washington, D.C.

20009 One Ashburton Place 4-P.O. Box 330 Philip Ahren, Esq.

Boston, Massachusetts 02108 Assistant Attorney General State House, Station #6 D. Pierre G. Cameron, Jr., Esq.

Augusta, Maine 04333 General Counsel Public Service Company of New Hampshire Mr. Edward A. Brown, President Manchester, New Hampshire 03105 and Chief Executive Officer New Hampshire Yankee Division Mr. James M. Peschel Public Service Company of Public Service Company of New Hamsphire New Hampshire P.O. Box 300 Post Office Box 300 Seabrook, New Hampshire 03874 Seabrook, New Hampshire 03.874 Seacoast Anti-Pollution League Regional Administrator, Region I 5 Market Street U.S. Nuclear Regulatory Commission Portsmouth, New Hampshire 03801 475 Allendale Road 25 Maplewood Ave.

King of Prussia, Pennsylvania 19406 Ms. Diana P. Randall Ashod N. Amirian, Esq.

70 Collins Street Town Counsel for Merrimac Seabrook, New Hampshire 03874 376 Main Street Haverhill, Massachusetts 08130 Mr. T. Feigenbaum Public Service Company of i

New Hamsphire Post Office Box 330

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l Edward A. Brown, Prblic Seabrook Nuclear Power Station

• Service Company of New Hampshire cc:

Mr. Calvin A. Canney, City Manager Mr. Alfred V. Sargent, City Hall Chairman 126 Daniel Street Board of Selectmen Portsmouth, New Hampshire 03801 Town of Salisbury, MA 01950 Board of Selectmen Senator Gordon J. Humphrey RFD Dalton Road ATTN: Tom Burack Brentwood, New Hampshire 03833 531 Har; w t9 Office Building U.:. Senat.t Ms. Suzanne Breiseth, 4,ushington, 0.6, Z"%

Board of Selectmen Town of Hampton Falls Drinkwater Road Mr. Owen D. Du g=r., U..n man Hampton Falls, New Hampshire 03844 Durnam Board of Selectmen i

Town of Durham Mr. Guy Chichester, Chaiman Durham, New Hamnshire 03824 Rye Nuclear Intervention Committee Jane Spector l

c/o Rye Town Hall Federal Energy Regulatory l

10 Central Road Commission Rye, New Hampshire 03870 825 North Capital Street, NE Room 8105 Chairman, Board of Selectmen Washington D. C. 20426 E

RFD 2 South Hampton, New Hampshire 03827 Mr. R. Sweeney R. Scott Hill - Whilton Three Metro Center Lagoulis, Clark, Hill-Whilton Suite 610

& McGuire Bethesda, Maryland 20814 79 State Street Newburyport, Ma. 01950 Mr. Richard Strome, Director Ms. R. Cashman, Chairman New Hampshire Office of Emergency Board of Selectmen Management Town of Amesbury State Office Park South Town Hall 107 Pleasant Street Amesbury, Massachusetts 01913 Concord, New Hampshire 03301 Adjudicatory File (2)

Honorable Peter J. Matthews Atomic Safety and Licensing Board Mayor, City of Newburyport Panel Docket City Hall U.S. Nuclear Regulatory Commission Newburyport, Massachusetts 01950 Washington, D.C. 20555 Mr. Donald E. Chick, Town Manager Congressman Nicholas Mavroules Town of Exeter 70 Washington Street 10 Front Street Salem, Massachusetts 01970 Exeter, New Hampshire 03823 Mr. G. Thomas Mr. John C. Duffett Public Service Company of President and Chief Executive Officer New Hampshire j

Public Service Company of New Hampshire Post Office Box 330 4

1000 Elm St., P.O. Box 330 Seabrook, New Hampshire 03874 Manchester, New Hampshire 03105

1 ENCLOSURE STAFF COMMENTS ON APPLICANTS' RESPONSE TO CLI 88-10 1.

The Commission's funding requirements in CLI-88-10 were based upon values expressed in 1988 constant dollars (see CLI-88-10 pp 14, 15). The Commission adopted the Applicants' response to CLI-88-07, "The Plan", to develop its estimate of decommissioning and fuel storage costs. Section 3, Table 2, Note 1 of "The Plan" states "All VALUES ARE IN 1988 DOLLARS." Table 2 presented the estimated costs associated with returning Seabrook Unit 1 to unrestricted use and termination of the NRC license in the event low power testing had been completed and a full power license was not granted.

The Surety does not state that the expenditure amounts that appear in the Surety are in 1988 constant dollars.

2.

The language of the Surety does not appear to address contingencies other than denial of a full power license, e.g., where the Applicants withdraw their application for a full power license subsequent to operation in accordance with a low power license or where the Applicants are granted a license for operation at power levels above 5% but less than full power.

The Surety, or whatever assurance mechanism is used, should make clear that funds as reauired by CLI-88-10 will be available in all cases "in the event that low-power operation has occurred and a full power license is not granted" CLI-88-07, 28 NRC at 273, CLI-88-10, 28 NRC

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