ML13092A142

Independent Spent Fuel Storage Installation - Funding Status Report for Managing Irradiated Fuel and GTCC Waste

ML13092A142
Person / Time
Site:	Maine Yankee
Issue date:	03/19/2013
From:	Pizzella C Maine Yankee Atomic Power Co
To:	Document Control Desk, Office of Nuclear Material Safety and Safeguards, Office of Nuclear Reactor Regulation
References
OMY-13-023
Download: ML13092A142 (5)

Text

MaineYankee 321 OLD FERRY RD. .WISCASSET, ME 04578-4922 March 19, 2013 OMY-13-023 10 CFR 50.4 10 CFR 50.82(a)(8)(vii)

ATTN: Document Control Desk U.S. Nuclear Regulatory Commission Washington, DC 20555 -0001 Maine Yankee Atomic Power Company Maine Yankee Independent Spent Fuel Storage Installation NRC License No. DPR-36 (NRC Docket Nos. 50-309 and 72-30)

Subject:

Funding Status Report for Managing Irradiated Fuel and GTCC Waste On August 7, 1997, Maine Yankee Atomic Power Company (Maine Yankee) informed the USNRC that the Board of Directors of Maine Yankee had decided to permanently cease operations at the Maine Yankee plant and that fuel had been permanently removed from the reactor (Reference 1). In accordance with 10 CFR 50.82(a)(2), the certifications in the letter modified the Maine Yankee license to permanently withdraw Maine Yankee's authority to operate the reactor. In 1998, Maine Yankee commenced decommissioning the power plant. On September 30, 2005, the NRC amended the Maine Yankee license, releasing most of the formerly licensed land for unrestricted use, shrinking the licensed land to the Independent Spent Fuel Storage Installation (ISFSI) only (Reference 2). Presently, Maine Yankee is storing irradiated fuel and Greater than Class C (GTCC) waste on site until it is removed by the Department of Energy (DOE).Maine Yankee provides the attached Funding Status Report for Managing Irradiated Fuel and GTCC waste at the Maine Yankee ISFSI to comply with 10 CFR 50.82(a)(8)(vii).

If you have any questions regarding this letter, please do not hesitate to contact me at (860) 267-6426 x304.Respectfully, Carla M. Pizzell Vice President, Chief Financial Officer, and Treasurer A1~S, .

Maine Yankee Atomic Power Company OMY-13-023\March 19, 2013\Page 2

Attachment:

Attachment

-Commitment:

Funding Status Report for Managing Irradiated Fuel and GTCC Waste at the Maine Yankee Independent Spent Fuel Storage Installation (Status as of 12/31/2012)

This letter contains no regulatory commitments.

References:

1. M. B. Sellman (Maine Yankee) letter to USNRC, "Certifications of Permanent Cessation of Power Operation and Permanent Removal of Fuel from the Reactor," dated August 7, 1997 2. USNRC letter to Maine Yankee, License Amendment No. 172 to Facility Operating License No. DPR-36, dated September 30, 2005 cc: W. M. Dean, NRC Region I Administrator M. S. Ferdas, Chief, Decommissioning Branch, NRC, Region 1 J. Goshen, NRC Project Manager, Maine Yankee P. Dostie, State of Maine, Nuclear Safety Inspector J. Hyland, State of Maine, Manager Radiation Control Program OMY-13-023 ATTACHMENT FUNDING STATUS REPORT FOR MANAGING IRRADIATED FUEL AND GTCC WASTE AT THE MAINE YANKEE INDEPENDENT SPENT FUEL STORAGE INSTALLATION (STATUS AS OF 12/31/2012)

March 2013 Attachment to ONIY-13-023 Funding Status Report for the Managing of Irradiated Fuel and GTCC Waste at the Maine Yankee Independent Spent Fuel Storage Installation (Status as of 12/31/2012) 10 CFR Requirement I Response Comment 10 CFR 50.82(a)(8)(vii)

Requirements

1. The amount of funds accumulated

$73.5 million Maine Yankee Atomic Power Company (Maine Yankee) has established an account to cover the cost of managing the (as of within its Nuclear Decommissioning Trust (NDT) entitled, "ISFSI Radiological irradiated fuel. 12/31/12)

Decom," that segregates the funds for decommissioning of the Maine Yankee Independent Spent Fuel Storage Installation (ISFSI) from the larger balance of funds for ongoing management of irradiated fuel and Greater than Class C (GTCC) waste held in the NDT. The market balance represented here as of 12/31/12 excludes the funds set-aside for decommissioning the ISFSI.2. The projected cost of managing $86.7 million On January 8, 2013, Maine Yankee provided a revised decommissioning funding plan irradiated fuel until title to the 2013 through in accordance with 10 CFR 72.30(b)(2) that included a cost estimate for managing fuel and possession of the fuel is 2023 irradiated fuel and GTCC waste at the Maine Yankee ISFSI.transferred to the Secretary of (In 2013 Energy. dollars) Please note that in 2013, Maine Yankee is planning to submit a revised cost estimate for management of the irradiated fuel and GTCC waste at the Maine Yankee ISFSI to the Federal Energy Regulatory Commission (FERC) that will propose to extend the duration of storage of irradiated fuel and GTCC waste based on recent information published by the DOE as a result of Blue Ribbon Commission recommendations.

Once approved by FERC, the revised cost estimate will be incorporated into future Funding Status Reports.Page 1 of 2 Attachment to OMY-13-023 Funding Status Report for the Managing of Irradiated Fuel and GTCC Waste at the Maine Yankee Independent Spent Fuel Storage Installation (Status as of 12/31/2012) 10 CFR Requirement Response Comment 3. If the funds accumulated do not See Comment The Company has several methods of obtaining additional funds to cover projected cover the projected cost, a plan to costs.obtain additional funds to cover the cost. First, Maine Yankee is currently collecting funds through its power contracts and amendatory agreements under FERC regulation.

The power contracts and the amendatory agreements specify the obligations of the purchasers for the costs of Maine Yankee, including the ongoing costs of managing irradiated fuel and GTCC waste.Pursuant to these power contracts, Maine Yankee has the ongoing ability to seek collections from its purchasers for additional funds that may be required to cover these costs.Second, Maine Yankee has received proceeds from the successful litigation of the first phase of its breach of contract damages claims against the DOE for failure to begin the removal of spent nuclear fuel (SNF) and GTCC waste from the site in 1998. A second damages claim is currently pending against the DOE relating to the government's continuing breach of contract and more claims are expected to be filed against the DOE as long as the DOE continues to breach its contract obligations related to SNF and GTCC waste. Each of these claims will likely result in the receipt of proceeds that can be used to offset future costs, if required.Third, Maine Yankee expects to utilize the investment return on Decommissioning Trust assets to offset future costs. The current assumed rate of investment return, after fees and taxes is 5.5%.Page 2 of 2