ML080460186
| ML080460186 | |
| Person / Time | |
|---|---|
| Site: | Millstone  |
| Issue date: | 02/14/2008 |
| From: | Hartz L Dominion Nuclear Connecticut |
| To: | Document Control Desk, Office of Nuclear Reactor Regulation |
| References | |
| 07-0847A, TAC MD5057, TAC MD5058 | |
| Download: ML080460186 (7) | |
Text
Dorrurrion Nuclear Connecticut, Inc.
Dominion Boulevard, Glen Allen, Virginia 25060\VCD vddrcss: www.dom.com February 14, 2008 Attn: Document Control DeskU.S.Nuclear Regulatory Commission Washington,D.C.20555-0001SerialNo.NL&OSIT JS Docket Nos.License Nos.07-0847A R1 50-336,423 DPR-65 NPF-49 DOMINION NUCLEAR CONNECTICUT, INC.MILLSTONE POWERSTATIONUNITS2AND3 RESPONSE TO REQUEST FOR INFORMATION CONCERNING BIENNIAL DECOMMISSIONINGFUNDREPORT(TACNOS.MD5057AND MD5058)On December 17,2007,theNRC sent a letter to Dominion Nuclear Connecticut, Inc.(DNC)concerning the MillstonePowerStationUnits2and3 biennial decommissioning funding statusreportsfiledinMarch2005andMarch2007.
Specifically, a written explanation was requestedregardingthereported balance of radiological decommissioning fundsandNRC requirements and restrictionsrelatedto those funds.As documentedinDNC LetterSerialNo.07-0847,dated January 9,2008,theNRC grantedDNCuntil February15,2008to provide this response.DNC's written response is attached.Please contactMr.DavidA.
Sommersat(804)273-2823ifyouhaveany questions or require additional information.
Sincerely,"-';\-./'.);/(-n:LeslieN.Hartz I Vice President Nuclear Support Services Dominion Resources Services, Inc For Dominion Nuclear Connecticut, Inc.Attachment Commitments madeinthisletter:None SerialNo.07-0847A Docket Nos.50-336/423Page2 of 2cc:U.S.Nuclear Regulatory CommissionRegionI 475 Allendale RoadKingofPrussia,PA 19406-1415Ms.C.J.SandersNRCProject ManagerMillstonePowerStationUnits2and3U.S.Nuclear Regulatory Commission One WhiteFlintNorth11555RockvillePikeMailStopOWFN08 83Rockville,MD 20852-2738 NRC Senior Resident Inspector MillstonePowerStation ATTACHMENT DECOMMISSIONINGFUNDREPORT:
EXPLANATION OF REPORTED BALANCE IN RADIOLOGICAL DECOMMISSIONINGTRUSTFUND MILLSTONE POWER STATIONUNITS2AND3 DOMINION NUCLEAR CONNNECTICUT, INC SerialNo.07-0847ADocketNos.50-336,423 AttachmentPage1of4 BackgroundOnMarch29,2005,Dominion NuclearConnecticut,Inc.(DNC) submittedabiennial decommissioningfundingstatusreport(SerialNo.05-121)whichincludedan accountingoffundsheldinexternaltrusts(exclusiveoffunds designatedforanISFSI)asof December 31,2004forMillstonePowerStationUnits2and3(MPS2and3)($314.0and321.1million,respectively).OnMarch 29,2007, Dominion submitted itsmostrecentbiennial decommissioningfundingstatusreport(SerialNo.
07-0174)whichincludedan accountingoffundsheldinexternaltrusts(exclusiveoffunds designatedforanISFSI)asof December31,2006forMPS2and3($273.3and285.2million,respectively).Ina telephonecallon September 5,2007,NRCandDNC discussed theperceivedreductioninfunding.AsnotedinaNRCletterof December17,2007,DNC identifiedduringthe Septembertelecon"thatsuchreductionswerenottheresultof withdrawalsfromthetrust,butweretheresultofchangesin accountingforfundsinthe trust." NRC RequestIna letter dated December17,2007,theNRCrequested"afullwritten explanation as to whetherthereductioninthereportedbalanceofyourradiological decommissioningfundsfromthe balancepreviouslyreportedconstituteda withdrawal or disbursementwithinthescopeoftheNRC'srestrictionson withdrawals or disbursements." ONe ResponseToreiterateandconfirmthe informationprovidedtheNRCinthe September 5,2007,telecon,the changeinthereportedvaluesfortheMPS2and3trustsisnottheresultof any withdrawal or disbursementofthe decommissioningfunds.No withdrawal or disbursement other than permissible administrative expenseshasoccurred.Rather, the changeinthereportedvaluerepresentsachangein Dominion's internal accountingtobe consistentwiththeresultsofthemostrecent decommissioning cost estimatestudyand, therefore,forinternalaccountingandplanning purposestomore accurately apportionthetotalfundrelativetothebreakdownofcostsinthe cost-study update.Thiswasviewedas conservativebecauseitshowedthatevenwiththeprojected distribution of post-shutdowncosts,theportion apportionedtoradiological decommissioningforinternal accountingandplanning purposesbythismethod exceedsNRC'srequiredfundingamount.Thisinternal accountingdoesnotaffectorlimitthe amountinthetrust fundsthatis available for radiological decommissioning and subjecttoNRC jurisdiction.Thetotal decommissioningfundremainsavailableforradiological decommissioning, remains Serial No.07-0847A DocketNos.50-336,423 AttachmentPage2of4 subjecttoNRC jurisdiction,andremainssubjecttothe specific license conditionsintheMPSUnits2and3licenses.Theseconditionsprovide,"No disbursements or paymentsfromthetrust,otherthanordinary administrativeexpenses,shallbemadeby the trusteeuntilthetrusteehasfirstgiventheDirectoroftheOfficeof Nuclear Reactor Regulation 30-dayspriorwrittennoticeofpayment."Likewise,"no disbursements or paymentsfromthetrustshallbemadeifthetrusteereceivespriorwrittennoticeof objectionfromtheNRC."Specifically,no thirty-day notificationshavebeenmadefor eitherMPS2or3basedonthe decommissioningfundstatusreport.Thetrust agreementsforboththequalifiedand non-qualified decommissioning trustsforMPS2and3 incorporatetheselicenseconditionsina mannerapplyingtoallfundsinthetrusts.Thetrustsdonotcontain sub-accounts, and Dominion's internal accountingisforplanningpurposes.Suchinternalplanningisnotapartofthe trustee's management or administrationofthetrustsanddoesnot permit the trusteetomake any payment or disbursementwithouttherequiredNRC notifications.Insummary,nowithdrawalor disbursementfromtheradiological decommissioningfundsoccurred.Theradiological decommissioningfundstatusreportedonMarch29,2007,simplyprovidedan administrativeaccountingthat apportioned total decommissioningfundinproportiontothe percentageofradiological decommissioningcostsinthemostrecent, independent, decommissioning cost estimatestudy.Basedonthiscoststudy,the decommissioningfundwillbe adequatelyfundedforall aspects of decommissioning.
DiscussionUnderthe provisionsoftheMarch9,2001,NRCOrderthat transferred the licenses forMPS2and3toDNC,allthe accumulated decommissioningtrustfundsforMPS2and3werealsotobe transferredtoDNC.These transferred funds represent co-mingledfundingfor radiological decommissioning, non-radiological decommissioning, spent nuclear fuel management, and IndependentSpentFuel Storage Installation decommissioning.Multiplelicenseconditionsassociatedwith decommissioning funding were specificallyaddedaspartoflicensetransfer.Theselicense conditions include provisionsrequiringNRCnotificationpriortoa paymentfromthetrustoran amendmentofthetrust agreementaswellasaprovisiontowithhold payment subjecttoa formal NRC objection.Inthebiennial decommissioningfundstatusreport pursuantto10CFR50.75,DNC was conservativelyonlyreportingtheportionofthetotal transferred decommissioningtrustfundthatwasrelativetotheexpected percentageofradiological decommissioningcostsbasedonthelatest decommissioningcoststudy(i.e.,costs necessaryto"remove the facility safelyfromserviceandreduceresidual radioactivitytoalevelthatpermitsreleaseofthe propertyforunrestricteduse").Thisapproachreflects Dominion's understandingthat(1)after permanentcessationofoperations,actual expenditures SerialNo.07-0847A Docket Nos.50-336,423 AttachmentPage3of4wouldbe controlledunderthe submittalsrequiredby10CFR 50.54(bb)and50.82;and(2)ifthefunding requirementsforradiological decommissioningaremetatthattime,anyexcess amountsinthe decommissioningtrustwouldbe available for spent nuclear fuel decommissioning and non-radiological decommissioningofthesite.However,all decommissioningtrustfundsareheld under the authorityoftheexistinglicense conditions.Reportinga percentageoftotalfunds,correlatedtothecostbreakdowninthe latest decommissioning cost estimatestudy,astheportionofthetrustfund allocable to radiological decommissioningcreatedthe misperceptionthatthefundshad diminished.Amore completepictureofthetotaltrustfundundertheprovisionsoftheexisting license conditioniscontainedinthefollowingtable.
,--March 2005 Filing March 2007 Filing Total LessReportedtoNRCTotalLessReportedtoNRC 12/31/2004OtherActivitiesAs of 12/31/200412/31/2006OtherActivitiesAsof12/31/2006TrustFund(ForInternal(RadiologicalTrustFund(ForInternal (Radiological BalanceEstimatePortion)
Balance Estimate Portion)Subject ToPurposesOnly)TrustFundSubjectToPurposesOnly)TrustFund Site Unit NRC Jurisdiction Pro-ration BalanceNRCJurisdiction Pro-ration Balance 1--. 2$315,295,136
$1,245,757
$314,049,379
$361,432,609
$88,113,694
$273,318,915 M>S 3$329,380,445
$8,304,845
$321,075,600
$376,344,844
$91,158,598
$285,186,246 l....-.Thefirstcolumn underboththeMarch2005andMarch2007filingslistthetotal trust fund balancesbyunitattheendoftheyearpriortothefiling(e.g.,2005filing
=$315.3MMforMPS2,$329.4MMforMPS3and2007filing
=$361.4MMforMPS2,$376.3MMforMPS3).NotethatbothMPS2and3totaltrustfund balances increasedoverthetwoyearreportingperiod.ThesecondcolumnunderboththeMarch2005andMarch2007filingslistthe internallyallocatedportionofthetotaltrustfundassociatedwith decommissioning activities other than radiological decommissioning.Thisvaluewas determinedbyapplyingthe fractional proportionofthe decommissioningcoststudyassociatedwith activities other than radiological decommissioningtothetotal decommissioning trustfund.The significant change in estimatesforthis categoryistheresultofutilizingamore detailedmodelandan independent assessorindevelopingthemostrecentcoststudy.Thethirdcolumn underboththeMarch2005andMarch2007filingslisttheportionofthetotaltrustfundthatwasallocatedtoradiological decommissioningforinternal accountingandplanningpurposes.Thisvaluewas,likewise, determined by proportionallyapplyingthefractionofthe decommissioningcoststudy,which applies to radiological decommissioning,tothetotaltrustfund.Thiscolumn identifieswhatwasreportedtotheNRCinthebiennialfilingsofMarch29,2005andMarch29,2007.
SerialNo.07-0847ADocketNos.
50-336,423 AttachmentPage4of4 With respecttothe decommissioningtrustfundtotals available for radiological decommissioningofMPS2and3,thetotaltrustfundbalancesare availableandhavegrown,not decreased,between2005and2007.Theperceived decrease, as identifiedbytheNRC,isaresultofinternalaccountingallocations,nottheresultof withdrawals or disbursements(exceptthose disbursementsallowedfornormal administrative and managementfees).ThetotalMPS2and3TrustFunds(Qualified
&Non-Qualified foreachunit)remain under NRC jurisdictionandaresubjecttoallNRC restrictions governing decommissioningtrustfunds.Thenotedinternal allocationsoftrustfund balancesaresolelyforinternalplanningpurposesto prudently evaluate and compare fund balanceswiththelatest decommissioningestimates.Alltrustfund balances remain availableforradiological decommissioningactivitiesasdefinedbytheNRC.Reportingthe internallyallocatedvalueassociatedwithradiological decommissioningratherthanthevalueofthetotaltrustfundwasbelievedandintendedtoboth correctly and conservatively representandconveytheactual performance of radiological decommissioningtrustfundsbasedonexpected expenditures.