ML043210199

Request for Telecon - Oyster Creek and 10 CFR 50.54(bb)

ML043210199
Person / Time
Site:	Oyster Creek
Issue date:	11/10/2004
From:	Tam P NRC/NRR/DLPM/LPD1
To:	Distel D, David Helker, Tom Loomis, Robillard D - No Known Affiliation, Exelon Corp
References
TAC MC4994
Download: ML043210199 (3)

Text

From: Peter Tam To: David Distel; David Helker; David Robillard; Thomas Loomis Date: 11/10/04 10:58AM

Subject:

Request for Telecon - Oyster Creek and 10 CFR 50.54(bb)

Dave:

For the DECON option, your April 14, 2004, preliminary costs estimate for radiological decommissioning of the plant was $480 million in 2003 dollars. Your October 29, 2004, submittial lists the amount necessary for radiological decommissioning of the facility at $422 million assuming a real rate of return of 2 percent through the decommissioning period.

Question 1: Please explain the difference in these two estimates, and how the fund will grow over each year such that sufficient funds will be available to cover the preliminary cost estimate.

In addition, discuss the discount rate used in the April 14, 2004-preliminary cost estimate to compute the $480 million estimate.

The NRC compared the amount necessary to support radiological decommissioning to the minium cost required by the NRC formula amount of $393.4 million to confirm that the preliminary cost estimate was equal to or greater than the minium required by the formula. To address construction inflation, a four-percent escalation rate was applied to escalate the amount to 2004 dollars, resulting in a minium cost estimate of $ 409 million. The four percent was used since the waste disposal updated information is not available.

Question 2: Your October 29, 2004, submittial stated the amount in the decommissioning trust fund for radiological decommissioning is approximately $531 million as of August 30, 2004, and assuming a real rate of return of 2 percent, the decommissioning trust would be approximately

$586 million by 2009. Depending on which amount is used for estimating the radiological decommissioning cost of Oyster Creek, the trust fund may have up to a $100 million in excess of the required amount for radiological decommissioning. Currently, Oyster Creek proposes to use any excess funds to support spent fuel management costs as well as AmerGen operating revenue. Oyster Creek has estimated the spent fuel management cost at approximately $142 million in 2003 dollars. Please confirm that AmerGen intends to leave the $ 530 million in the trust fund to support radiological decommissioning, and acknowledge that none of that money would be spent to support spent fuel management prior to shut down. In addition, confirm that if a significant upward change in decommissioning costs arises, AmerGen would be required by 10 CFR 50.54(bb) to provide a revised program addressing how the spent fuel funding shortfall would be addressed.

Please call me to set up a conference call with our reviewer Larry Pittiglio. This e-mail does not formally request for information, nor does it state a formal NRC staff position.

Disposition of the 2 questions above will be discussed in the telecon.

Peter S. Tam, Senior Project Manager Project Directorate I-1 Division of Licensing Project Management Office of Nuclear Reactor Regulation e-mail: pst@nrc.gov Tel.: 301-415-1451 CC: Clayton Pittiglio; Michael Dusaniwskyj Mail Envelope Properties (41923A9E.FF9 : 10 : 20510)

Subject:

Request for Telecon - Oyster Creek and 10 CFR 50.54(bb)

Creation Date: 11/10/04 10:58AM From: Peter Tam Created By: PST@nrc.gov Recipients Action Date & Time David Transferred 11/10/04 10:58AM distel (David Distel) owf2_po.OWFN_DO Delivered 11/10/04 10:58AM MAD1 CC (Michael Dusaniwskyj) Opened 11/12/04 12:11PM owf4_po.OWFN_DO Delivered 11/10/04 10:58AM CLP CC (Clayton Pittiglio) Opened 11/10/04 11:15AM exeloncorp.com Transferred 11/10/04 10:58AM david.helker (David Helker)

David.Robillard (David Robillard) thomas.loomis (Thomas Loomis)

Post Office Delivered Route David INTernet:exeloncorp.

com owf2_po.OWFN_DO 11/10/04 10:58AM owf4_po.OWFN_DO 11/10/04 10:58AM exeloncorp.com Files Size Date & Time MESSAGE 3825 11/10/04 10:58AM Options Auto Delete: No Expiration Date: None Notify Recipients: Yes Priority: Standard Reply Requested: No Return Notification: None Concealed

Subject:

No Security: Standard To Be Delivered: Immediate Status Tracking: Delivered & Opened