ML091900341

Summary of Conference Calls with the Tennessee Valley Authority Regarding Decommission Funding Assurance

ML091900341
Person / Time
Site:	Browns Ferry, Watts Bar, Sequoyah
Issue date:	07/14/2009
From:	Ellen Brown Plant Licensing Branch II
To:	Swafford P Tennessee Valley Authority
Brown E, NRR/DORL, 415-2315
References
TAC ME0491, TAC ME0492, TAC ME0493, TAC ME0571, TAC ME0572, TAC ME0587
Download: ML091900341 (6)

Text

UNITED STATES NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 20555-0001 July 14, 2009 Mr. Preston D. Swafford Chief Nuclear Officer and Executive Vice President Tennessee Valley Authority 3R Lookout Place 1101 Market Street Chattanooga, TN 37402-2801

SUBJECT:

BROWNS FERRY NUCLEAR PLANT, UNITS 1,2, AND 3; SEQUOYAH NUCLEAR PLANT, UNITS 1 AND 2; WADS BAR PLANT, UNIT 1 -

SUMMARY

OF CONFERENCE CALLS WITH THE TENNESSEE VALLEY AUTHORITY REGARDING DECOMMISSION FUNDING ASSURANCE (TAC NOS. ME0491, ME0492, ME0493, ME0571, ME0572, AND ME0587)

Dear Mr. Swafford:

In a letter dated March 31, 2009, the Tennessee Valley Authority (TVA, the licensee) submitted a report on the status of the decommissioning funding for its six operating nuclear units. On June 5,9, and 30, 2009, the Nuclear Regulatory Commission (NRC) staff held conference calls with representatives of the licensee. The purpose of the June 5 call was to notify the licensee of pending correspondence identifying an apparent shortfall in the decommissioning funding for the TVA nuclear plants. The June 9 and 30 calls were to clarify the amount of the decommissioning funding assurance shortfall calculated by the NRC staff for the subject units, to clarify the methodology used by the NRC staff to determine decommissioning funding assurance levels, and to establish a schedule for the submittal of a plan to address the shortfall.

A list of participants is provided as Enclosure 1. A summary of the calls is included in .

The licensee agreed to submit its plan on or before July 31, 2009, in accordance with the provisions of Title 10, Code of Federal Regulations, Section 50.4. The licensee indicated that its plan might not contain sufficient detailed numerical information to permit the staff to evaluate its plan, so a commitment was made to provide the remaining information no later than September 4, 2009. The submittals should include the final agreed-upon values for the required minimum amount, projected total amount of decommissioning funding assurance, and the potential shortfall as of December 31, 2008.

P. Swafford -2 Should you have any additional questions, please feel free to contact me at 301-415-2351.

Sincerely, IRA!

Eva A. Brown, Senior Project Manager Plant Licensing Branch 111-2 Division of Operating Reactor Licensing Office of Nuclear Reactor Regulation Docket Nos. 50-259, 50-260, 50-296 50-327, 50-328, and 50-390

Enclosures:

1. List of Participants

2. Summary of Calis cc w/encls: Distribution via Listserv

LIST OF PARTICIPANTS CONFERENCE CALLS WITH TENNESSEE VALLEY AUTHORITY DECOMMISSION FUNDING ASSURANCE June 5,2009 NRC TVA Michael Dusaniwskyj Michael Purcell Fred Mashburn Anneliese Simmons Leslie Bazzon John Hoskins Thomas Fredrichs Bill Horin Eva Brown Eric Davis June 9,2009 NRC TVA Michael Dusaniwskyj Eva Brown Michael Purcell Fred Mashburn John Lamb Anneliese Simmons Leslie Bazzon John Hoskins Thomas Fredrichs Tom Boyce Bill Horin Ed Vigilucci Aaron Szabo Eric Davis Joann Simpson Larry Nicholson June 30. 2009 NRC TVA Michael Dusaniwskyj Eva Brown Michael Purcell Fred Mashburn Thomas Fredrichs Anneliese Simmons Leslie Bazzon John Hoskins Aaron Szabo Theodore Quay Bill Horin Ed Vigilucci Susan Uttal Robert Carlson Eric Davis Joann Simpson Christopher Gratton Beth Mizuno Enclosure 1

UNITED STATES NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 20555-0001 July 14, 2009 LICENSEE: Tennessee Valley Authority FACILITIES: Browns Ferry Nuclear Plant, Units 1, 2, and 3, Sequoyah Units 1 and 2, and Watts Bar Unit 1

SUMMARY

OF CONFERENCE CALLS WITH THE TENNESSEE VALLEY AUTHORITY REGARDING DECOMMISSION FUNDING ASSURANCE (TAC NOS. ME0491, ME0492, ME0493, ME0571, ME0572, AND ME0587)

On June 5, 9, and 30, 2009, the Nuclear Regulatory Commission (NRC) staff held conference calls with representatives of The Tennessee Valley Authority (TVA, the licensee). The purpose of the June 5 call was to notify the licensee of pending correspondence identifying an apparent shortfall in the decommissioning funding for the TVA nuclear plants. The June 9 and 30 calls were to clarify the amount of the decommissioning funding assurance shortfall calculated by the NRC staff for Browns Ferry Nuclear Plant, Units 1, 2, and 3; Sequoyah Nuclear Plant, Units 1 and 2; and Watts Bar Plant, Unit 1; to clarify the methodology used by the NRC staff to determine decommissioning funding assurance levels, and to establish a schedule for the submittal of a plan to address the shortfall.

During the June 5 conference call, the NRC staff provided the results of the review that identified a shortfall for each of the TVA nuclear units. The licensee concurred that a shortfall existed, but indicated that the numbers provided did not appear to be consistent with their projections. The NRC staff indicated that when the proposed letter was issued, TVA would be expected to provide a plan to address the projected shortfall. The licensee questioned various assumptions used to calculate the shortfalls during the call. During the June 9 conference call, the licensee provided a spreadsheet that calculated the decommissioning trust fund balance until 7 years after the expiration of each nuclear unit's license. It was determined that the major reason for the difference between the NRC and TVA's numbers was due to the TVA staff basing the Decommissioning Trust Fund shortfall on the current value of the shortfall versus projecting the shortfall based on the year the operating license expired. The NRC staff also noted other areas in the licensee's calculations that differed in approach from NRC staff's, such as credit for an additional year, and a different approach to the credit that can be applied after decommissioning commences, but these differences did not result in substantially different shortfall amounts.

During the June 30 conference call, the NRC staff described for each nuclear unit its calculation of the minimum amount of financial assurance required by Title1 0 of the Code of Federal Regulations, Sections 50. 75(c)(1) and (2). The NRC staff once again identified the amount credited to the licensee's decommissioning funding assurance total due to contributions, if any, and earnings on its decommissioning trust fund balance. The difference between the minimum Enclosure 2

-2 required amount and the total amount of decommissioning funding assurance provided, including earnings and contributions, as of December 31, 2008, was identified as a potential shortfall jf no adjustments are made by the licensee.

For each unit, the licensee agreed that the amounts described by the NRC staff reflected the licensee's decommissioning funding assurance status as of December 31,2008. The licensee reiterated concerns discussed with the NRC staff on June 9, including the credit for an additional year, and a different approach to the credit that can be applied during the 7 years after decommissioning commences. The NRC staff indicated that the proposals would be considered and recommended that they include these proposals and others for NRC staff review in their plan.

It was determined that the plan should be provided no later than July 31,2009. The licensee indicated a problem with being able to provide the specifics in their plan given that approval is needed from the TVA Board of Directors, which will not meet until August 20,2009. The NRC staff indicated that by July 31,2009, TVA should provide as much information regarding the path being proposed as possible. The licensee indicated that they would include a commitment to provide the specifics once the TVA Board of Directors had approved a means for rate relief.

The licensee indicated that they expected to be able to provide the additional information by September 4, 2009.

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