ML20100K194

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Forwards Executed Copy of Amend 26 to Indemnity Agreement B-20 Re Secondary Financial Protection,Per NRC 850320 Request.Util 841204 Cash Flow Statement Encl.Anniversary Date of 841204 Proposed for Submitting Annual Statements
ML20100K194
Person / Time
Site: Fermi DTE Energy icon.png
Issue date: 04/10/1985
From: Jens W
DETROIT EDISON CO.
To: Youngblood B
Office of Nuclear Reactor Regulation
Shared Package
ML20100K197 List:
References
NE-85-0472, NE-85-472, NUDOCS 8504120310
Download: ML20100K194 (2)


Text

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April 10, 1985 NE-85-0472 Director of Nuclear Reactor Regulation Attention: Mr. B. J. Youngblood, Chief Licensing Branch No. 1 Division of Licensing U. S. Nuclear Regulatory Commission Washington, D.C. 20555

Dear Mr. Youngblood:

Reference:

(1) Fermi 2 NRC License No. NPF-33 (2) URC to Detroit Edison Letter, " Issuance of Facility Operating License NPF-33, Fermi 2",

March 20, 1985

Subject:

Indemnity Agreement No. B-20 Secondary Financial Protection As requested per Reference (2), please find enclosed an executed copy of Amendment No. 26 to the subject agreement.

We are also enclosing a copy of our cash flow statement for Secondary Financial Protection under the Price-Anderson Act, which was originally submitted to Mr. Saltzman, Assistant Director of State and Licensee Relations on December 4, 1984. We propose that December 4, 1984 be considered the anniversary date for the submittal of all future statements.

We will plan on submitting such statements annually on December 4, unless you or Mr. Saltzman indicate otherwise.

As you know, Wolverine Power Supply Cooperative, Inc., has an ownership interest in Fermi 2. Therefore, we are enclosing a copy of the April 29 and May 28, 1976, memorandums which constitutes Wolverine's response to the Secondary Financial Protection requirements as detailed under 10CFR140.21.

8504120310 850410 PDR ADOCK 05000341 J PDR

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Mr. B. J. Youngblood April 10, 1985 UE-85-0472 Page 2 Should you have any questions or comments on the enclosed material, please contact Mr. Keener Earle at (313) 586-4211.

Sincerely, N

Attachment cc: Mr. P. M. Byron

!!r. M. D. Lynch fir . J. D. Saltzman 4

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N[ p u m g. [9f UNITED STATES NUCLEAR REGULATORY COMMISSION 5 j WASHINGTON, D. C. 20555

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Docket Nos. 50-16 50-341 AMENDMENT TO INDEMNITY AGREEMENT NO. B-20 AMENDMENT N0. 26 Effective March 20,.1985 , Indemnity Agreement No. B-20, between The Detroit Edison Company, Wolverine Power Supply Cooperative, Inc. and the Atomic Energy Commission, dated March 26, 1962, as amended, is hereby further amended as follows:

Item 2a. of the Attachment to the indemnity agreement is deleted in its entirety and the following substituted therefor:

Item 2 - Amount of financial protection

a. $ 1,000,000 (From 12:01 a.m., January 25, 1961, to 12:00 midnight, July 10, 1963 inclusive)

$ 1,500,000 (From12:01a.m., July 11, 1963, to 12:00 midnight, December 16, 1965 inclusive)

$ 3,500,000 (From 12:01 a.m., December 17, 1965, to 12:00 midnight, March 21, 1966 inclusive)

$12,100,000 (From 12:01, March 22, 1966, to 12:00 midnight, July 5, 1966 inclusive)

$18,000,000 (From 12:01 a.m., July 6, 1966, to 12:00 midnight, August 6, 1967 inclusive)

$22,200,000 (From 12:01 a.m., August 7, 1967, to 12:00 midnight, October 8, 1970 inclusive)

$29,600,000 (From 12:01 a.m. , October 9,1970, to 12:00 midnight, October 15, 1970 inclusive)

$44,400,000 (From 12:01 a.m., October 16, 1970, to' 12:00 midnight, December 31, 1972 inclusive)

$1,000,000 (From 12:01 a.m., January 1, 1973, to 12:00 midnight, March 19, 1985

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$160,000,000* (From 12:01 a.m. , March 20,1985)

Item 3 of the Attachment to the indemnity agreement is deleted in its entirety and the following substituted therefor:

Item 3 - License number or numbers SNM-426 (From 12:01 a.m. , January 25, 1961, to 12:00 midnight, July 10, 1963 inclusive)

DPR-9 (From 12:01 a.m., July 11,1963)

SNM-1915 (From 12:01 a.m., May 31, 1983, to 12:00 midnight inclusive)

NPF-33 (From 12:01 a.m. , fiarch 20, 1985 )

Item 5 of the Attachment to the indemnity agreement is amended by adding the followino-Nuclear Enersj Liability Policy (Facility Form) No. MF-120, issued by Mutual Atomic Energy Liability Underwriters.

FOR THE UNITED STATES NUCLEAR REGULATORY C0lHISSION

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Jerome SaltzmaOssist- Director

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State and Licensee Re tions Office of State Pro ams .g Accepted March 25 , 1985 Accepted 2'40cd

/ 27 1985 By M. By /44((hetk .

THE DETROIT EDISON COMPANY WOLKRIf POWER SUPPLY

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  • and, as of August 1, 1977, the amount available as secondary financial protection.

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. . , Vee President Nuclear Operateris Q

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[ Pg Peenport, Mchegan .8166 DEc i-I I I piamin December 4, 1984 EF2-72026 Mr. Jerome Saltzman, Assistant Director State and Licensee Relations .

Office of State Programs U. S. Nuclear Regulatory Commission Washington, D.C. 20555

Dear Mr. Saltzman:

Reference:

Fermi 2 N NRC Docket No. 50-341

Subject:

Price-Anderson Act Guarantee of Retrospective Premiums .

Enclosed for your review is a copy of Detroit Edison's cash flow statement to meet the requirements of 10 CFR 140.21.- The statement was prepared in accordance with Regulatory Guide 9.4 and outlines the Company's financial obligation, as detailed under the Secondary Finqncial Protection of the PF1ce-Anderson

  • Act. .

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We will await the results of your review and should you have any questions, please egntact Mr. Keener Earle at (313) 586-4211.

Sincerely, l

! cc: Mr. P. M. Byron l Mr. M. D. Lynch I

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CERTIFICATE I, Ronald W. Gresens, Controller and Chief Accounting Officer of The Detroit Edison Company (" Company"), do hereby certify that the 1983 Actual financial data shown on the company's 1984 Internal Cash Flow Projection is derived from the Company's consolidated financial statements for the year ended December 31, 1983 and that the 1984 Projection is the latest projection of the Company for the year ended December 31, 1984. The financial data is that of the Company only and does not include that of Wolverine Power Supply Coopersptve, Inc. ("Cooperattve"), a joint owner of Fermi-2.

Under the ownership agreement, for Fermi-2, the percentage owner-ship interests of the Company and the Cooperative in Fermi-2 will change over time with the Company's interest increasing and the Cooperative's interest decreasing. The current ownership interests -

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for the Company and the Cooperative are 80% and 20%, respectively.

Dated: November 28, 1984 LN- . 'NA Ronald W. Gresens, Cbigroller -

The Detroit Edison Company

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1 l,7 THE DETROIT EDISON COMPANY 1984 Internal Cash Flow Projection For Fermi-2 Nuclear Power Station '

(Thousands of Dollars) 1983 1984 Actual Projection Net lacone After Taxes $ 364,622 $ 397,864 Less: Dividends (306,073) (332,328)~

Retained Earnings $ 58,549 $ 65,536 Adjustments:

Depreciation $ 171,940 $ 190,640 Amortisation of Property Losses 10,449 12,231 Deferred Income Taxes and .

Investment Tax credits 135,603 130,971 Allowance for Funds Used During Construction (287,152) (293,819)

Total' Adjustments S 30,840 $ 40,023 Internal Cash Flow $ 89,389 $ 105,559 Average Quarterly Cash Flow $ 22,347 $ 26,390 P:rcentage Ownership in All Operating -

ws Muclear Units 'O (a)

Maximum Total .

Contingent Liability 0 (a)

(c) Fermi-2 is petroit Edisop's only puclear unit and as of November 28, }984 is not operating. The estimated earliest commercialoperationdateforFarpi-2'isJune}945.

11-28-84 A A

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UNITED STATES DEPARTMENT OF AGRICULTURE RURAL ELECTRIFICATION AoMINISTRATioN WASHINGTON. D.C. 20250 urrsCE OF THE AOMtNISTR ATOM 8*

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SUBJECT:

Nuclear Regulatory Commission

' Call re Price-Anderson Act TO: David A. Hamil -

Administrator On this date Mr. Dinitz of NRC caned me about the Price-Anderson Act. He said they had published a proposed rule on March 18 which might not have come to our attention. He said that in case of a major, accident, there could be an' assessment against a nuclear plant in the range of {4 to $5 million, and he wondered how this migh:

, affect our borrowers, He was aware that our borrowers at present

'have no more than a minority interest in any major plants, f ,In discussion I mentioned that in case of necessity REA has authority to make an operating loan to a borrower, and that an amount of

. $5 million was not large in comparison to our annua 11oan program.

He said that this liackup would satisfy them with respect to the ability of an REA financed system to meet their assessment. He said he would send us a copy of their proposed rule for our commen'ts, and '

it would be helpful for us to mention our authority to make an operating loan, ,

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  • DAVID H. ASKEG RD .' i. - .

Deputy Administrator .'-

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. John Holt 0

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