ML13092A143

Yankee Nuclear Power Station Independent Spent Fuel Storage Installation, Funding Status Report for Managing Irradiated Fuel and GTCC Waste

ML13092A143
Person / Time
Site:	Yankee Rowe
Issue date:	03/19/2013
From:	Pizzella C Yankee Atomic Electric Co
To:	Document Control Desk, Office of Nuclear Material Safety and Safeguards
References
BYR 2013-014
Download: ML13092A143 (5)

Text

YANKEE ATOMIC ELECTRIC COMPANY Telephone (413) 4245261 49 Yankee Road, Rowe, Massachusetts01367

~YANKEE March 19, 2013 BYR 2013-014 10 CFR 50.4 10 CFR 50.82(a)(8)(vii)

ATTN: Document Control Desk U.S. Nuclear Regulatory Commission Washington, DC 20555 - 0001 Yankee Atomic Electric Company Yankee Nuclear Power Station Independent Spent Fuel Storage Installation NRC License No. DPR-3 (NRC Docket Nos.50-029 and 72-31)

Subject:

Funding Status Report for Managing Irradiated Fuel and GTCC Waste On February 26, 1992, Yankee Atomic Electric Company (YAEC) informed the USNRC that the Board of Directors of YAEC had decided to permanently cease operations at the Yankee Rowe 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 YAEC license to permanently withdraw YAEC's authority to operate the reactor. In 1993, YAEC commenced decommissioning the power plant. On August 10, 2007, the NRC amended the YAEC 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, YAEC is storing irradiated fuel and Greater than Class C (GTCC) waste on site until it is removed by the Department of Energy (DOE).

YAEC provides the attached Funding Status Report for Managing Irradiated Fuel and GTCC waste at the Yankee Nuclear Power Station 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. Pizzella Vice President, Chie Financial Officer, and Treasurer

Yankee Atomic Electric Company BYR 2013-014\March 19, 2013\Page 2

Attachment:

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

Commitment: This letter contains no regulatory commitments.

References:

1. A. C. Kadak (YAEC) letter to USNRC, "Permanent Cessation of Power Operations at the Yankee Nuclear Power Station," BYR-92-024, dated February 26, 1992

2. USNRC letter to Yankee Atomic Power Company, "Yankee Nuclear Power Station - Release of Land from Part 50 License," dated August 10, 2007 cc: W. M. Dean, NRC Region I Administrator M. S. Ferdas, Chief, Decommissioning Branch, NRC, Region I J. Goshen, NRC Project Manager, Yankee Rowe J. Giarrusso, Planning, Preparedness & Nuclear Section Chief, MEMA J. Cope-Flanagan, Assistant General Counsel, MDPU J. Reyes, State of Massachusetts Office of the Attorney General

BYR 2013-014 ATTACHMENT FUNDING STATUS REPORT FOR MANAGING IRRADIATED FUEL AND GTCC WASTE AT THE YANKEE NUCLEAR POWER STATION INDEPENDENT SPENT FUEL STORAGE INSTALLATION (STATUS AS OF 12/31/2012)

March 2013

Attachment to BYR 2013-014 Funding Status Report for the Managing of Irradiated Fuel and GTCC Waste at the Yankee Nuclear Power Station Independent Spent Fuel Storage Installation (Status as of 12/31/2012) 10 CFR Requirement Response Comment 10 CFR 50.82(a)(8)(vii) Requirements

1. The amount of funds accumulated $58 million Yankee Atomic Electric Company (YAEC) has established an account within its to cover the cost of managing the (as of Nuclear Decommissioning Trust (NDT) entitled, "ISFSI Radiological Decom," that irradiated fuel. 12/31/12) segregates the funds for decommissioning of the Yankee Nuclear Power Station 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 $66.6 million On December 17, 2012, YAEC provided a decommissioning funding plan in irradiated fuel until title to the From 2013 - accordance with 10 CFR 72.3 0(b)(2) that included a cost estimate for managing fuel and possession of the fuel is 2022 irradiated fuel and GTCC waste at the Yankee Nuclear Power Station ISFSI.

transferred to the Secretary of (In 2013 Energy. dollars) Please note that in 2013, YAEC is planning to submit a revised cost estimate for management of the irradiated fuel and GTCC waste at the Yankee Nuclear Power Station 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.

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Attachment to BYR 2013-014 Funding Status Report for the Managing of Irradiated Fuel and GTCC Waste at the Yankee Nuclear Power Station 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, YAEC 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 YAEC, including the ongoing costs of managing irradiated fuel and GTCC waste. Pursuant to these power contracts, YAEC has the ongoing ability to seek collections from its purchasers for additional funds that may be required to cover these costs.

Second, YAEC 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, YAEC 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 4.4%.

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