ML21089A241

U.S. Nuclear Regulatory Commission Analysis of Southern Nuclear Operating Company, Inc'S Initial Decommissioning Funding Plans for Farlely, Hatch, and Vogtle Independent Spent Fuel Storage Installations

ML21089A241
Person / Time
Site:	07200042, 07200036, 07201039
Issue date:	05/20/2021
From:	John Mckirgan Storage and Transportation Licensing Branch
To:	Gayheart C Southern Nuclear Operating Co
YJChen - NMSS/DFM/STL - 301.415.1018
References
CAC 001028, EPID L-2017-FPR-0024, EPID L-2017-FPR-0072, EPID L-2017FPR-0032
Download: ML21089A241 (4)

Text

May 20, 2021 Ms. Cheryl A. Gayheart Regulatory Affairs Director Southern Nuclear Operating Co., Inc.

3535 Colonnade Parkway Birmingham, AL 35243

SUBJECT:

U.S. NUCLEAR REGULATORY COMMISSION ANALYSIS OF SOUTHERN NUCLEAR OPERATING COMPANY, INCS INITIAL DECOMMISSIONING FUNDING PLANS FOR THE FARLEY, HATCH, AND VOGTLE INDEPENDENT SPENT FUEL STORAGE INSTALLATIONS

Dear Ms. Gayheart:

By letter dated March 31, 2014, Southern Nuclear Operating Company, Inc. (SNC) submitted, for U.S. Nuclear Regulatory Commission (NRC) staff review and approval, initial decommissioning funding plans (DFPs) for the independent spent fuel storage installations (ISFSIs) at Joseph M. Farley Nuclear Plant, Units 1 and 2 (Farley); 1 Edwin I. Hatch Nuclear Plant, Unit Nos. 1 and 2 (Hatch); and Vogtle Electric Generating Plant, Units 1 and 2 (Vogtle) 2 (Agencywide Documents Access and Management System (ADAMS) Accession No. ML14091A008).

In accordance with Title 10 of the Code of Federal Regulations (10 CFR), Section 72.30(b), and using NUREG-1757, Vol. 3, Rev. 1, Consolidated Decommissioning Guidance, the NRC staff reviewed SNCs initial DFPs, including the initial decommissioning cost estimates (DCEs) and the method of assuring funds for decommissioning.

Pursuant to 10 CFR 72.30(b), each holder of, or applicant for, a license under Part 72 must submit for NRC review and approval a DFP containing information on how reasonable assurance will be provided that funds will be available to decommission its ISFSIs. The DFP must contain a detailed DCE, in an amount reflecting: (1) the cost of an independent contractor to perform all decommissioning activities, (2) an adequate contingency factor, and (3) the cost of meeting the 10 CFR 20.1402 unrestricted use criteria (or the cost of meeting the 10 CFR 1

Alabama Power Company owns Farley. Farleys license authorizes SNC to both operate Farley and act as agent for Alabama Power Company. SNC submitted the initial DFP.

2 Oglethorpe Power Corporation; the Municipal Electric Authority of Georgia; the City of Dalton, Georgia; and Georgia Power Company (collectively, Owners) co-own Hatch and Vogtle. SNC operates Hatch and Vogtle, and the Owners have authorized SNC to exercise exclusive responsibility and control over the physical construction, operation, and maintenance of the facilities. SNC submitted the initial DFPs. With regard to Hatch and Vogtle, the ownership percentages breakdown as follows: Oglethorpe Power Corporation - 30% and 30%, respectively; Municipal Electric Authority of Georgia - 17.7% and 22.7%,

respectively; City of Dalton, Georgia - 2.2% and 1.6%, respectively; and Georgia Power Company -

50.1% and 45.7%, respectively. SNCs submittal lists Dalton Utilities as contributing to the decommissioning trust fund. The City of Dalton, Georgias Water, Light & Sinking Fund Commission oversees the operations of Dalton Utilities, meaning these contributions are the City of Dalton, Georgias contributions.

C. Gayheart 20.1403 restricted use criteria, provided the licensee can demonstrate its ability to meet these criteria). The licensees DFP must also identify and justify using the key assumptions contained in the DCE. Further, the DFP must describe the method of assuring funds for ISFSI decommissioning, including means for adjusting cost estimates and associated funding levels periodically over the life of the ISFSI. Additionally, the DFP must specify the volume of onsite subsurface material containing residual radioactivity that will require remediation to meet the criteria for license termination, and contain a certification that financial assurance for ISFSI decommissioning has been provided in the amount of the DCE.

The NRC staff reviewed and analyzed the information submitted by SNC on how reasonable assurance will be provided that funds will be available to decommission the ISFSIs, including the amount of the DCE and the method of assuring funds for decommissioning.

In its 2014 initial DFPs, SNC estimated the total costs to decommission the ISFSIs to unrestricted use: Farley ($2.312 million for Unit 1 and $2.312 million for Unit 2, in 2013 dollars),

Hatch ($2.350 million for Unit 1 and $2.350 million for Unit 2, in 2012 dollars), and Vogtle

($1.993 million for Unit 1 and $1.993 million for Unit 2, in 2012 dollars).

Based on its financial analysis of SNCs submittals, the NRC staff finds that the DCEs submitted for 2014: (1) are based on reasonable costs of a third-party contractor; (2) include an adequate contingency factor; (3) reflect the cost of meeting the 10 CFR 20.1402 criteria for unrestricted use; and (4) are based on reasonable and documented assumptions. Therefore, the NRC finds that the 2014 DCEs adequately estimate the cost, to carry out required ISFSI decommissioning activities prior to license termination, and that the 2014 DCEs are acceptable.

In the initial DFPs, SNC relied on excess funding from the decommissioning trust fund designated for each facility as financial assurance for ISFSI decommissioning, a method authorized by 10 CFR 50.75(e) which is allowed under 10 CFR 72.30(e)(2). This is allowed because the ISFSIs belong to licensees with a power reactor license under part 50. The trust fund balances account for the 10 CFR Part 50 license expiration dates and the ISFSI DCEs assume all costs incurred following the year in which spent fuel has been fully removed from the ISFSI. The NRC staff finds that the aggregate dollar amount of the licensees financial instruments provides adequate financial assurance to cover the cost estimates, and therefore, that these financial instruments are acceptable.

Based on its financial analyses, the NRC staff finds that the initial DFPs contain the information required by 10 CFR 72.30(b) and that SNC has provided reasonable assurance that funds will be available to decommission the ISFSIs at Farley, Hatch, and Vogtle.

In addition to the NRC staffs review of SNCs initial DFPs, the NRC staff completed an environmental review. The NRC staff published a summary of the results of the environmental review in the Federal Register in May 2021 for the ISFSIs at Farley, Hatch, and Vogtle. The environmental assessments and findings of no significant impact for these ISFSIs are available in https://www.regulations.gov under the Docket ID: NRC-2021-0097. The NRC staff determined there was no environmental impact from the NRC staffs review and approval of SNCs initial DFPs.

C. Gayheart If you have any questions regarding this matter, please contact me at (301) 415-5722 or John.McKirgan@nrc.gov.

Sincerely, John B. Digitally signed by John B.

McKirgan McKirgan Date: 2021.05.20 08:23:43

-04'00' John B. McKirgan, Chief Storage and Transportation Licensing Branch Division of Fuel Management Office of Nuclear Material Safety and Safeguards Docket No(s).: 72-42, 72-36, and 72-1039 License No(s).: SFGL-25, SFGL-09, and SFGL-59 CAC No.: 001028 EPID No(s): L-2017-FPR-0024, L-2017-FPR-0032, and L-2017-FPR-0072

ML21089A241

• concurrence via email OFFICE NMSS/DFM NMSS/DFM OGC/NLO NMSS/STLB NAME YChen* WWheatley* NMertz* JMcKirgan*

DATE 4/12/2021 4/09/21 5/6/2021 05/20/2021