ML080670093

Request for Additional Information to Support the Review of the Pilgrim Nuclear Power Station Spent Fuel Management Plan Pursuant to 10 CFR 50.54(bb)

ML080670093
Person / Time
Site:	Pilgrim
Issue date:	03/12/2008
From:	James Kim NRC/NRR/ADRO/DORL/LPLI-1
To:	Balduzzi M Entergy Nuclear Operations
kim J, NRR/ADRO/DORL, 415-4125
References
TAC MD8036, FOIA/PA-2013-0151
Download: ML080670093 (6)

Text

March 12, 2008 Mr. Michael A. Balduzzi Sr. Vice President & COO Regional Operations, NE Entergy Nuclear Operations, Inc.

440 Hamilton Avenue White Plains, NY 10601

SUBJECT:

REQUEST FOR ADDITIONAL INFORMATION TO SUPPORT THE REVIEW OF THE PILGRIM NUCLEAR POWER STATION SPENT FUEL MANAGEMNT PLAN PURSUANT TO 10 CFR 50.54(bb) (TAC NO. MD8036)

Dear Mr. Balduzzi:

By letter dated June 7, 2007, Entergy Nuclear Operations, Inc. (the licensee) submitted the Pilgrim Nuclear Power Station spent fuel management plan for review.

The Nuclear Regulatory Commission staff has been reviewing the submittal and has determined that additional information is needed to complete its review. The specific questions are found in the enclosed request for additional information (RAI). A response to this RAI is requested to be provided within 30 days.

Sincerely,

/ra/

James Kim, Project Manager Plant Licensing Branch I-1 Division of Operating Reactor Licensing Office of Nuclear Reactor Regulation Docket No. 50-293

Enclosure:

As stated cc w/encl: See next page

ML080670093 OFFICE LPLI-1/PM LPLI-1/LA LPLI-1-1/BC NAME JKim SLittle MKowal DATE 3/11/08 3/11/08 3/12/08

REQUEST FOR ADDITIONAL INFORMATION BY THE OFFICE OF NUCLEAR REACTOR REGULATION TO SUPPORT THE REVIEW OF THE PILGRIM NUCLEAR POWER STATION SPENT FUEL MANAGEMENT PLAN RAI No. 1:

Table 1 entitled, Estimated Spent Fuel Management Costs listed expenditures for the period from 2012 - 2017 at an estimated cost of $156 million in 2006 dollars. Describe in detail, the

$156.0 million in expenditures for the period from 2012- 2017. In the submittal, Table 1 identified these costs as spent fuel management costs. While the submittal identified the expenses associated with spent fuel storage, it did not include in the plan a mechanism for funding for the spent fuel costs. Describe in detail, a mechanism for funding for the spent fuel costs.

RAI No. 2 Section 5 entitled, Financial Assurance listed the balance in the decommissioning trust fund as of December 31, 2006, as $582.63 million, and stated that the projected decommission cost amount based on the formula is $482.28 million.

NRC regulations allow a licensee to take a 2% real rate of return credit on investments unless a higher rate is authorized by a regulated licensees public utility commission. Pilgrim is not rate regulated, so the NRC staff applied a 2% real rate of return on the trust fund balance ($582.6 million) based on the regulation and deducted the expenses identified in Table 1, Estimated Spent Fuel Management Costs. The results were that the trust fund exceeded the formula amount, however, since Pilgrim has not submitted a site-specific cost estimate as required by the regulation, and recognizing that the site-specific cost estimate can be greater cost than the formula amount, Entergys position that the trust fund balance exceeds the cost required for radiological decommissioning, and therefore, the excess funds would be available to address spent fuel management costs is not fully supported. How will Entergy fund the Pilgrim spent fuel management cost?

Enclosure

Pilgrim Nuclear Power Station cc:

Regional Administrator, Region I Director, Massachusetts Emergency U. S. Nuclear Regulatory Commission Management Agency 475 Allendale Road Attn: James Muckerheide King of Prussia, PA 19406-1415 400 Worcester Road Framingham, MA 01702-5399 Senior Resident Inspector U. S. Nuclear Regulatory Commission Mr. William D. Meinert Pilgrim Nuclear Power Station Nuclear Engineer Post Office Box 867 Massachusetts Municipal Wholesale Plymouth, MA 02360 Electric Company P.O. Box 426 Chairman, Board of Selectmen Ludlow, MA 01056-0426 11 Lincoln Street Plymouth, MA 02360 Mr. Kevin H. Bronson Site Vice President Chairman Entergy Nuclear Operations Nuclear Matters Committee Pilgrim Nuclear Power Station Town Hall 600 Rocky Hill Road 11 Lincoln Street Plymouth, MA 02360-5508 Plymouth, MA 02360 Mr. Robert G. Smith Chairman, Duxbury Board of Selectmen General Manager, Plant Operations Town Hall Entergy Nuclear Operations 878 Tremont Street Pilgrim Nuclear Power Station Duxbury, MA 02332 600 Rocky Hill Road Plymouth, MA 02360-5508 Office of the Commissioner Massachusetts Department of Mr. Stephen J. Bethay Environmental Protection Director, Nuclear Safety Assurance One Winter Street Entergy Nuclear Operations Boston, MA 02108 Pilgrim Nuclear Power Station 600 Rocky Hill Road Office of the Attorney General Plymouth, MA 02360-5508 One Ashburton Place 20th Floor Mr. Bryan S. Ford Boston, MA 02108 Manager, Licensing Entergy Nuclear Operations MA Department of Public Health Pilgrim Nuclear Power Station Radiation Control Program 600 Rocky Hill Road Schrafft Center, Suite 1M2A Plymouth, MA 02360-5508 529 Main Street Charlestown, MA 02129

Pilgrim Nuclear Power Station cc:

Mr. John T. Herron Ms. Charlene D. Faison Sr. Vice President Manager, Licensing Entergy Nuclear Operations Entergy Nuclear Operations 1340 Echelon Parkway 440 Hamilton Avenue Jackson, MS 39213 White Plains, NY 10601 Mr. Oscar Limpias Mr. Ernest J. Harkness Vice President, Engineering Director, Oversight Entergy Nuclear Operations Entergy Nuclear Operations, Inc.

440 Hamilton Avenue 1340 Echelon Parkway White Plains, NY 10601 Jackson, MS 39213 Mr. John A. Ventosa Mr. William C. Dennis GM, Engineering Assistant General Counsel Entergy Nuclear Operations Entergy Nuclear Operations 440 Hamilton Avenue 440 Hamilton Avenue White Plains, NY 10601 White Plains, NY 10601 Mr. Joseph P. DeRoy Ms. Stacey Lousteau VP, Operations Support Treasury Department Entergy Operations, Inc. Entergy Services, Inc.

1340 Echelon parkway 639 Loyola Avenue Jackson, MS 39213 New Orleans, LA 70113 Mr. Michael Kansler Mr. James Sniezek President & CEO/CNO 5486 Nithsdale Drive Entergy Nuclear Operations Salisbury, MD 21801-2490 1340 Echelon Parkway Jackson, MS 39213 Mr. Michael D. Lyster 5931 Barclay Lane Mr. John F. McCann Naples, FL 34110-7306 Director, Nuclear Safety & Licensing Entergy Nuclear Operations Mr. Garrett D. Edwards 440 Hamilton Avenue 814 Waverly Road White Plains, NY 10601 Kennett Square, PA 19348 Mr. John Doering P.O. Box 189 Parker Ford, PA 19457