ML20237B400

Requests Consideration for self-guarantee Financial Assurance Method for Decommissioning of Triga Reactor & Zero-Power Reactor,Per 10CFR50.33(k)(2) & 50.75(d). Decommissioning rept,FY96-97 Financial Rept,Included

ML20237B400
Person / Time
Site:	05000157, 05000097
Issue date:	08/13/1998
From:	Rebecca Richardson CORNELL UNIV., ITHACA, NY
To:	Michaels T NRC (Affiliation Not Assigned), NRC OFFICE OF INFORMATION RESOURCES MANAGEMENT (IRM)
Shared Package
ML20237B402	List: ML20237B400 ML20237B410
References
NUDOCS 9808180237
Download: ML20237B400 (7)

Text

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CORNELL U N I V E R S I T Y Office of the Vice Provost for Research . 314 Day Hall Ithaca, New York 14853-2801 Telephone:607 255-7200 Facsimile:607 255-9030

- August 13,1998 Document Control Desk c/o Dr. Theodore S Michaels Office of Nuclear Reactor Regulations U. S. Nuclear Regulatory Commission Washington, DC 20555

Subject:

Submission of Decommissioning Report,10 C.F.R. 50.75(d)

Cornell TRIGA Reactor, Facility License R-80, Doc. No. 50-157 Cornell Zero Power Reactor, Facility License R-89, Doc. No. 50-97 Dear Dr. Michaelsi In response to_ the regulations published in the June 1st,1998, issue of the j Federal Register, 63 Fed. Reg. 29,535 (codified at 10 C.F.R. 99 30, 40, 50, j 70, 72), Cornell University would like to be considered for the self-guarantee i financial assurance method for the decommissioning of its TRIGA Reactor i and Zero-Power Reactor, pursuant to 10 C.F.R. 50.33 (k)(2) and 50.75(d).

Cornell. University meets all of the necessmy requirements for the financial test and believes that the self-guarantee would be a desirable option for both Cornell and the Commission.

Cornell University currently maintains an AA bonding rating from Standard  !

and Poor's and a rating of Aa from Moody's. In addition, enclosed is the most recent independently audited financial report for fiscal year 1996-1997. The report for fiscal year 1997-1998 will be completed shortly and, 1 as soon as it is available, forwarded to you. Also enclosed are the updated decommissioning costs, recently evaluated by Dr. Kenan Onin, the Director Ll of the university's' Ward Center for Nuclear Sciences.

l.

The university's annual financial report and updated decommissioning cost p estimate will be sent to the Commission yearly, within the required 90 days o after the close of the. fiscal year. Furthermore, should there be any reason that Cornell no longer meets the self-guartmtee requirements, a notice will be sent to the NRC establishing an alternative financial assurance.

9908180237 990013 PDR ADOCK 05000097 I PDR

In reviewing my file I see a letter sent from you dated July 17,1996, to my predecessor. Having taken my position as Vice Provost for Research on July 1,1998, I have been unable to ascertain from our records what response was sent. I sincerely apologize if you did not receive en answer to that letter. I hope to maintain the highest level of communication between the university and the Commission at all times. Dr. Ontn is similarly committed to maintaining our good working relationship with the Commission.

Cornell believes that the enclosed information fulfills the requirements of the new self-guarantee financial assurance method. If there are any questions concerning this report, please do not hesitate to contact me or Dr.

Kenan Onin, Director of the Ward Center for Nuclear Sciences,105 Ward Laboratory, Cornell University, Ithaca, New York, 14853 (607-255-5224) or Patricia Johnson, Assistant Treasurer, 3rd Floor Terrace Hill, Ithaca, New York 14850 (607-277-0022).

Sincerely, Robert C. Richardson

• Vice Provost for Research Encs: Decommissioning Report, Doc. Nos. 50-157 and 50-97 Financial Report i Bond Rating Publication Excerpts cc: Patricia Johnson, Assistant Treasurer Dr. Kenan Onin, Director, Ward Center Shirley K. Egan, Associate University Counsel A

l l

L__--_______________--______-_.-----.-----_-_--------_- - - ---- _-- -- - - - _ - - - - - - - ----- ----- --- - ---- d

Dockets 50-157 and 50-97 DECOMMISSIONING REPORT pursuant to 10 CFR 50.33 (k) (2) and 50.75 (d) for the Cornell University TRIGA (License R-80) and Zero Power (License R-89) Reactors 1

l The cost estimate for decommissioning the Cornell University TRIGA Reactor facility, in FY 98 dollars, is $3.82 million including a 25% contingency. This estimate is based on a cost study for decommissioning the University of Illinois, Urbana, Illinois (UIUC) Reactor conducted by GTS Duratek, Inc. in April 1998. The cost estimate for the 1.5.MW, UIUC-TRIGA reactor was $4.38 million in terms of FY 98 dollars. The UIUC-TRIGA and Comell TRIGA facilities are structurally very similar. However, the operating power levels of the two reactors are different, therefore estimated decommissioning cost for the Cornell TRIGA has been adjusted accordingly. The new cost estimate for the Cornell TRIGA revises the previous estimate of $1.35 million (1991 dollars) provided as part of the decommissioning report of May 1991. We believe that $3.82 million (1998 dollars) is a more realistic and appropriate value considering projected 1991 decommissioning costs. The cost estimate for decommissioning the Cornell TRIGA facility will be adjusted annually using the formula given in 10 CFR 50.75 (c) (2) or increased inflation costs and uncertain increases in other cost factors. ,

1 The decommissioning process for the Cornell Zero-Power Reactor (ZPR) is continuing. The cost estimate for finishing the decommissioning process is $450,000. The main expense for the rest of )

decommissioning process is the shipment of ZPR fuel. We believe that the above cost figure is )

sufficient to complete the decommissioning of the Cornell ZPR reactor.

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l Voocy's Mun c pal.creci- aeoor )

l Cornell University l New York State Dormitory Authority July 15,1996 i

New lasue Update Higher Education

! Moody's roting: Ao Higher Educoton Revenue Related rating:

Moody's rating: Ao/VMiG1 variabio noie Demond/rized eate socios 1990s (SSPA: Margan Guaranty Trust)

(VMiG eating expires December 26,2000, upon converskm to exed rote or upon oor5et termino #on ofliquidity focluty) i Credit Commerd: Cornell's Ao rating is confirmed in conjunction with remain strong. His large asset must support an l the pending sale of $132 million in refunding revenue exception'ally large student body and research bonds through the New York State Dormitory program.

Authority.%e rating outlook is stable De ratin8 Copacity to Rolse Tultion Likely to Offset State i and rating outlook are based on the following: Funding Cuts l Strong Student Demand for Unique Combino- Comelts state-supported statutory colleges offer stu-tion of Private and Pubic Schools dents an extremely reputable degree at an affordable Cornell is a unique, hybrid institution offering both pric.c, thereby ensuring strong demand. Should state Ivy Ingue private education and publicly subsidized governrnent cut funding to these colleges, Cornell programs, such as agriculture. Student demand is still has the capacity to raise tuition to compensate.

strong in both areas, although selectivity is sbghtly Medical College Explores New Options weaker than sorne main competitors.

Substantial Endowment Supports large Cost WhW5is hd b % Ya @

ne uncertain outlook f:. federal funding for medical Bose research and education is prompting the University to Endowment ranks in the top 15 among the nation's consider new partnerships with medimi schools in universities, and is growing as ash rolls in frorn a the highly mmpetitive New York market.

$1.5 billion capital campaign: investment retums his update supplements the Credit Comment pub- June 6,1996 sale of $132,000,000 Revenue Bonds, lished in Moody's Rating Recap en May 23. He Series 1996.

update was prepared in conjunction with the I

Ln APillieJlrdl JUL 16 '96 16t49 ikkk 212-553-4000-6 PAGE.032

2 Higher Education July 15,1996 Cornell University -

New YorkState Dormitory Authority Icy facts: Medians Al Ao large Lorge  ;

Private Private Cornell Student Demand Dato (ocodemic year beginning fall 1995):

6,385 17.560 19,532 Total enrollment Undergraduate selectivity ratio (%) 74.6 46.3 @ 34.2 Undergraduate matriculation ratio (%) 35.3 37.1 0 45.4 Financial Dato (fiscol War 1995):

$61,901 $206,903 $445,461 Total debt ($000)

$126,658 $772,411 $1,475,576 Total endowment ($000)

$19,273 $71,840 $75,547 Endowrnent per student (3) 42.7 83.4 62.3 Unrestrided available funds ratio (%)

115.6 139.5 135.4 Unrestricted available funds to debt (%)

State appropriations % of revenues

- - 9.4 mo semswmeinededumesepesec s e. tan solo information: Legal Nome of issuer: Dormitory Antharity of the Key Contacts:

State of New York. University: Frederids Rogers, Senior Via President and Chief Fmancial Offser, Dofe of Bonds: May1,1996.

( ^****

Security: Generalobligation of the University under Treasurer,(607) 277-0022.

the W Agreement. Underwriter: Morgan Stanley, New York, Purpose of Borrowing: Refund outstanding maturi- Q12)7616849.

ties of Series 1966, except for $18 million maturity in Bond Counsel: Hughes, Hubbard & Reed.

2015. New York, p12) 837-6000, May 1984: Ao October 1972: A rating history:

onalysts:

John Nelson G12) 553-4096 Susan Fitzgerald 912) 553-7762 I

l l

r JUL 16 '96 16t49 212-553-4000-6 PAGE.003

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NEW YORK STATE DORMITORY AUTHORITY /TOMPKINS [ ly 9,1998 COUNTY INDUSTRIAL DEVELOPMENT AGENCY, NEW YORK  !.4 CORNELL UNIVERSITY ', T NEW RATING  ! OfGees:

New York State Dormitory Authority IY.ht Cornell University. New York 5100 mil comm pap nts ser 1998 dtd Sept 15,1998 due July 1,2028 A-l+ ?N f . Office:

Taln Tompkins County Industrial Development Agency, New York k j Comell University, New York 625 Broadway 550 mil civ fac rev bnds (Cornell Univ project) ser 1998 did Aug 1,1998 due July 1,2028 AA [k 'h cYork, NY 10004 Sale date: Sept 15,1998 .< 213) 208-8000 AFFIRMED i- "

New York State Dormitory Authonty i Cornell University, New York egional Offices:

560 mil multimodal var-rt ser 1990B AA/A-l+ [l; .

AA

{ Street,6th Floor 5278.86 mil rev bnds various ser Comell University, New York st$5, MA 02109

$18.55 mil taxable rev bnds ser 1987B AA 7')'37].0300

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OUTLOOK: STABLE  ;

O South Wacker Drive RATIONALE S 3> y .7..it.e 2915 ,i The 'A.1+' rating on New York State Dormitory Authority, N.Y.'S bonds, issued for Cornell ');. . Chicago, IL 60606 University, reflects the university's own liquidity. [(3 2 The 'AA' rating issued for Tompkins County Industrial Development Agency, N.Y.'s bonds issued for Cornell F,1, ) 831-0400 1 Uni.'ersity, reflects:  ; 500 North Akard Street

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I e A stable enrollment and strong student quality, iSuite 3200

• Consistent operatmg surpluses, and 1 Dallas,TX 75201 )

. A growing endowment. 1.(214)S71-1400 At the sarne time, Standard & Poor's affirmed its ratings on the authority's and Cornell University's revenue bonds. 555 California Street Comell's liquidity centinues to imros e fo!!cwing the completion of a s cry successful 5125 billion ' 21st Floor capital campaign, w hich raised 51.5 billion for endowment, fellow ships, program enhancement, and various . San Francisco, CA 94104 capital projects. Additional gifts, such as a 5100 million gift for the Medical College, continue to bolster the i University's endowment. M(415)  : 765-5000 j The ' A-l+' on the variable-rate series 1990B bonds reflects Cornell's own liquidity, which provides M j coverage of a full tender and a nonrated standby bond purchase agreement with Morgen Guaranty. The series y' '

l 1998 bonds will provide initial fundmg for the unis ersity's Lake Source Cooling project, and the commercial , l paper program w ill provide inter;m fmanemg for the unis ersity's long. term capital plan. ,

Enrollment has remained stable with 1998 headcount at 19,006, remaining relatively flat os er the past five 8: l years, and no future growth is planned. The university remains highly selective. accepting 34% of .

undergraduate applicants in 1998 and enrolling students with as crage SAT scores of 1,339. The graduate >

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programs are also very selective with the medical school accepting 3% of applicants, the veterinarian school r 15%, and the law school 26%.

,, j-Comell's program structure is unique in that the university consists of nine privately funded (endowed) T-?!

schools, such as the College of Engineering and the School of Hotel Administration, and four state. supported . . .

colleges-the College of Agriculture and Life Sciences, College of Human Ecology, School ofIndustrial and 6

fy I abor Relatiuns, and the College of Veterinary Medicine. De statutory colleges operate separately from the g r endowed, generating revenues mainly from state appropriations and tuition income. y ...

oUn.ooK ne outlook reflects the expectation that Cornell will continue to be a selective institution, generating .. . , .

sufficient surpluses to support operating needs. (

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OPERATloNS Comell's operations have historically been strong and the total bottom line in fiscal 1997 was 22% and I^ i 23% in fiscal 1996. De operations at the medical school have shown improvement with surpluses in 1997, an [k-MI 'b expected surplus in 1998, and a budgeted $12.5 million surplus in 1999. Total endowment as of May 31,1998 was $2.5 billion, an increase of 59% from 1995. Quasi endowment also increased significantly to 5626 mi!! ion } .;

at fiscal year-ended 1997. Unrestricted resources total an impressive 51.84 billion,134% of operations and -,.

309% of pro forma debt. Cornell's U.S. Treasurv bonds and notes in the short-term and long. term investment ,4.,

pools provide 2.2 times (x) coverage of outstanding variable-rate put bonds and the commercial paper program, i '

Total pro forma debt of 5570.6 million is manageable with maximum annual debt service at abaut 4.2% of - ,

operations. He rating also encompasses the possible issuance of an additional 550 million.590 million in debt '

in 1999 and 587 million in 2000 to refund the series 1990A bonds. .

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