ML17279A665

Informs That BPA Obligated to Total Annual Cost of Plant Under Terms of Net Billing Agreements.Opinion of BPA Re Obligation to Pay Should Satisfy Requirements of 10CFR140.21

ML17279A665
Person / Time
Site:	Columbia
Issue date:	12/03/1987
From:	Sorensen G WASHINGTON PUBLIC POWER SUPPLY SYSTEM
To:	NRC OFFICE OF ADMINISTRATION & RESOURCES MANAGEMENT (ARM)
References
NUDOCS 8712080432
Download: ML17279A665 (4)

Text

REGULA INFORMATION DISTRIBUTIO YSTEM <RIDS)

AC E~ON NBR: 8712080432 DOC. DATE: 87/12/03 NOTARIZED: NO DOCKET 0

,SCIL: 50-397 WPPSS Nuclear Pro Jecti Unit 2> Washington Public Powe 05000397 AUTH. NAME AUTHOR AFFILIATION SORENSEN> G. C. Washington Public Power Supply System RECIP. NAME RECIPIENT AFFILIATION Document Control Branch (Document Control Desk)

SUBJECT:

Informs that BPA obligated to total annual cost of plant under terms of Net Billing Agreements. Opinion of BPA re ogligation to pay should satisfy requirements of 10CFR140. 21. Comp i lance w/10CFR140. 21.

DISTRIBUTION CODE: NOOID COPIES RECEIVED: LTR t ENCL + SIZE: I TITLE: Insurance: Indemnity/Endorsement Agreements NOTES:

RECIPIENT COPIES RECIPIENT COPIES ID CODE/NAME LTTR ENCL ID CODE/NAME LTTR ENCL INTERNAL: NRR/PMAS/PTSB EG FILE 01 EXTERNAL: LPDR NRC PDR TOTAL NUMBER OF COPIES REQUIRED: LTTR 4 ENCL /

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WASHINGTON PUBLIC POWER SUPPLY SYSTEM P.o. Box 968 ~ 3000 George Washington Way ~ Richland, Washington 99352 December 3; 1987 U. S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington; D. C. 20555 Gentlemen:

Subject:

SUPPLY SYSTEM NUCLEAR PLANT NO. 2 OPERATING LICENSE NPF-21 GUARANTEE OF PAYMENT OF DEFERRED PREMIUM

Reference:

Letter, GC Sorensen (Supply System) to A. Schwencer (NRC);

same subject; dated December 19; 1984 This transmittal is provided in compliance with 10CFR 140.21 which requires annual filing of a guarantee of payment of deferred premiums in the amount of $ 10 million for each licensed reactor.

The Supply System obtains revenue from Plant No. 2 by selling the capability of the plant. The Bonneville Power Administration (BPA); an agency of the Department of Ener gy; has purchased the entire capability of Plant No. 2 from certain of its statutory preference customers who, in turn; purchased such capability from the Supply System; all under the Het Billing Agreements. A copy of the Net Billing Agreements was included as an attachment to the referenced letter. Under the terms of the Net Billing Agreements; BPA is obligated to pay the total annual costs of Plant Ho. 2 to the Supply System.

It is the opinion of BPA's General Counsel that "Bonneville is obligated to pay costs of ownership", operation; and maintenance, including costs of insurance; and specifically-, that insurance obligation provided through the Price Anderson Act" (see referenced letter).

The opinion of Bonneville regarding their obligation to pay should satisfy the requirements of 10CFR 140.21. If you require additional documentation; please contact Rich Bresnahan at (509) 372-5131.

Very truly yours; G. C. orensen; Manager Regul tory Programs PDR ADOCK 05000397, cc: RB Samworth/NRC I

I. Dinitz/NRC JB Martin/Region V NS Reynolds/BCP8R C Bosted/NRC Site JD Saltzman/NRC

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