ML13135A206

H. R. Robinson Steam Electric Plant, Unit No. 2 -RAI Re. the 2013 Decommissioning Funding Status Report

ML13135A206
Person / Time
Site:	Brunswick
Issue date:	05/29/2013
From:	Billoch-Colon A Plant Licensing Branch II
To:	Waldrep B Duke Energy Corp
Billoch-Colon A NRR/DORL/LPL2-2
References
TAC MF1212, TAC MF1213, TAC MF1226, TAC MF1242, TAC MF1281
Download: ML13135A206 (5)

Text

UNITED STATES NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 20555-0001

~fay 29, 2013 Mr. Benjamin C. Waldrep, Vice President Corporate Governance & Operation Support Duke Energy Corporation EC07H/P.O. Box 1006 Charlotte, North Carolina 28201-1006

SUBJECT:

BRUNSWICK STEAM ELECTRIC PLANT, UNITS 1 AND 2; SHEARON HARRIS NUCLEAR POWER PLANT, UNIT 1; CRYSTAL RIVER UNIT 3 NUCLEAR GENERATING PLANT; AND H.B. ROBINSON STEAM ELECTRIC PLANT, UNIT NO.2 - REQUEST FOR ADDITIONAL INFORMATION REGARDING THE 2013 DECOMMISSIONING FUNDING STATUS REPORT (TAC NOS. MF1212, MF1213, MF1226, MF1242 AND MF1281)

Dear Mr. Waldrep:

By letter to the U.S. Nuclear Regulatory Commission (NRC) dated March 28, 2013 (Agencywide Documents Access and Management System Accession No. ML13091A025), Duke Energy, on behalf of Carolina Power & Light Company, now doing business as Progress Energy Carolinas, Inc. and Florida Power Corporation, now doing business as Progress Energy Florida, Inc.

(together, the licensees), submitted the 2013 Decommissioning Funding Status Report as required under Title 10 of the Code of Federal Regulations (10 CFR) Part 50.75(f)(1) for Brunswick Steam Electric Plant, Units 1 and 2; Shearon Harris Nuclear Power Plant, Unit 1; Crystal River Unit 3 Nuclear Generating Plant, and H. B. Robinson Steam Electric Plant, Unit No.2.

The NRC staff is reviewing your submittal and has determined that additional information is required to complete the review. The specific information requested is addressed in the enclosure to this letter. During a discussion with your staff on May 22, 2013, it was agreed that you would provide a response 30 days from the date of this letter.

The NRC staff considers that timely responses to requests for additional information help ensure sufficient time is available for staff review and contribute toward the NRC's goal of efficient and effective use of staff resources.

B. Waldrep -2 Please contact me at (301) 415-3302 if you have any questions.

Sincerely, Araceli Billoch Col6n, Project Manager Plant Licensing Branch 11-2 Division of Operating Reactor licensing Office of Nuclear Reactor Regulation Docket Nos. 50-324, 50-325, 50-400, 50-302, and 50-261

Enclosure:

Request for Additional Information cc w/encl: Distribution via ListServ

REQUEST FOR ADDITIONAL INFORMATION FOR BRUNSWICK STEAM ELECTRIC PLANT, UNITS 1 AND 2; SHEARON HARRIS NUCLEAR POWER PLANT, UNIT 1; CRYSTAL RIVER UNIT 3 NUCLEAR GENERATING PLANT; AND H. B. ROBINSON STEAM ELECTRIC PLANT, UNIT 2 REGARDING THE 2013 DECOMMISSIONING FUNDING STATUS REPORT DOCKET NOS. SO-324, SO-32S, S0-400, SO-261, AND SO-261 By letter to the U. S. Nuclear Regulatory Commission (NRC) dated March 28, 2013 (Agencywide Documents Access and Management System Accession No. ML 13091A02S), Duke Energy, on behalf of Carolina Power & Light Company, now doing business as Progress Energy Carolinas, Inc. and Florida Power Corporation, now doing business as Progress Energy Florida, Inc.

(together, the licensees), submitted the 2013 Decommissioning Funding Status (DFS) Report as required under Title 10 of the Code of Federal Regulations (10 CFR) Part SO, Section 7S(f)(1) for Brunswick Steam Electric Plant, Units 1 and 2 (Brunswick); Shearon Harris Nuclear Power Plant, Unit 1 (Harris); Crystal River Unit 3 Nuclear Generating Plant (Crystal River) and H. B.

Robinson Steam Electric Plant, Unit No.2 (HBRSEP). The NRC staff has been reviewing the submittal and has determined that additional information is needed to complete its review.

Request for Additional Information (RAls):

RAI-1: Citation for real rate of returns On March 28, 2013, Progress Energy reported various levels of assumed cost escalation rates and assumed earnings rates for the various co-owners and portions of the trust funds; however, Progress Energy did not provide the Public Service Commission of South Carolina the Order that was issued on September 23, 2011, that authorizes Progress Energy to use a real rate of return greater than 2 percent for the South Carolina portion of the qualified decommissioning trust fund. Progress Energy also did not provide the citation(s) for the Crystal River co-owners that allows for a greater than 2 percent real rate of return.

As stated in 10 CFR SO.7S(f)(1),

the information in [the DFSJ report must include [...Jthe assumptions used regarding rates of escalation in decommissioning costs, rates of earnings on decommissioning funds, and rates of other factors used in funding projections ...

Provide the citation (e.g., an Order by the rate-regulatory authority) by the regulatory entity that allows for the assumptions used regarding rates of escalation in decommissioning costs, rate of Enclosure

- 2 earnings on decommissioning funds and rates of other factors assumed in your DFS report for all owners of Brunswick, Harris, Crystal River, and HBRSEP.

RAI-2: Amounts accumulated In its March 28, 2013, report, Progress Energy provided the amount of decommissioning funds accumulated at the end of the calendar year preceding the date of the report for items included in 10 CFR SO.7S(b) and (c), but did not indicate if the amount stated was the before or after-tax balance.

The provisions of 10 CFR SO.7S(f)(1) and (2) require the licensee to report the amount offunds accumulated to the end of the calendar year preceding the report.

Indicate if the amounts of decommissioning funds identified within the DFS report are the after-tax amount of funds accumulated through December 31, 2012. If not, provide the after-tax amounts of decommissioning funds accumulated through December 31,2012, for Brunswick, Harris, Crystal River, and HBRSEP.

RAI-3: Site-Specific Study Per 10 CFR SO.7S(e)(1)(i) and Oi), the licensee must specifically describe the safe storage period in order to take credit for projected future earnings when it uses a site-specific estimate as the basis for using the prepayment or external sinking fund methods of financial assurance.

In the March 31, 2013, submittal, Progress Energy referenced the Crystal River site-specific study that was submitted on November 29, 2011, but did not provide the site-specific cost estimate in 2012 dollars.

Provide the site-specific cost estimate in 2012 dollars for Crystal River, that was previously submitted to the NRC on November 29, 2011 pursuant to 10 CFR SO.7S(f)(3). The site specific cost estimate should include a summary schedule of annual expenses, projected earnings, and end-of-year fund balances, expressed in 2012 dollars.

B. Waldrep -2 Please contact me at (301) 415-3302 if you have any questions.

Sincerely, IRA!

Araceli Billoch Col6n, Project Manager Plant Licensing Branch 11-2 Division of Operating Reactor Licensing Office of Nuclear Reactor Regulation Docket Nos. 50-324, 50-325, 50-400, 50-302, and 50-261

Enclosure:

Request for Additional Information cc w/encl: Distribution via ListServ DISTRIBu-nON:

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