RS-21-044, Disbursement of Decommissioning Trust Funds

Disbursement of Decommissioning Trust Funds

ML21089A302
Person / Time
Site:	Calvert Cliffs
Issue date:	03/30/2021
From:	Simpson P Exelon Generation Co
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
RS-21-044
Download: ML21089A302 (2)

Text

4300 Winfield Road Warrenville, IL 60555 630 657 2000 Office RS-21-044 March 30, 2021 U.S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington, DC 20555-0001 Calvert Cliffs Nuclear Power Plant, Units 1 and 2 Renewed Facility Operating License Nos. DPR-53 and DPR-69 NRC Docket Nos. STN 50-317 and STN 50-318

Subject:

Disbursement of Decommissioning Trust Funds Exelon Generation Company, LLC (EGC) is providing notice to the NRC that certain provisions of the decommissioning trust agreement license conditions in the Calvert Cliffs Units 1 and 2 10 CFR 50 operating licenses were not followed. The license conditions at issue required that the trust agreement contain provisions for the trustee to provide advance notice to the NRC prior to making any disbursements from the trusts and to prohibit the trustee from making such disbursements if the NRC timely objects. Prior to January 1, 2021, the trust agreement for both Calvert Cliffs units required advance notice to the NRC for some, but not all, disbursements. In 2017, 2019, and 2020, disbursements for decommissioning planning costs were made from the trusts without providing advance notice to the NRC and without an opportunity for the NRC to object. As shown in the table below, between 2017 and 2020, EGC made six disbursements from the Calvert Cliffs decommissioning trust funds.

Year Unit 1 Unit 2 Date of Costs Amount ($) Amount ($) Disbursement Paid from Trusts 2014 89,150.00 89,150.00 July 2017 2015 1,290.00 1,290.00 November 2017 2016 22,747.09 22,747.11 November 2017 2017 21,316.96 21,316.96 May 2019 2018 202,507.27* 202,469.70* February 2020 2019 44,997.78 44,997.78 August 2020 Total 382,971.55 381,971.55

• In 2018, EGC performed a new updated site specific cost estimate for Calvert Cliffs Units 1 and 2, which accounts for the higher costs in 2018 as compared to other years.

March 30, 2021 U.S. Nuclear Regulatory Commission Page 2 In each case prior to the disbursement, EGC confirmed that the amount of decommissioning planning costs did not exceed the regulatory limit and withdrawal of funds from the trusts would not impede EGCs ability to place the units in safe storage condition or create a shortfall in decommissioning funding. Although the NRCs regulations, 10 CFR 50.75(h)(1)(iv) and 50.82(a)(8)(ii), allow trust disbursements for decommissioning planning expenses without providing notice to the NRC, it was not recognized until recently that the operating licenses contained appendices with the license conditions at issue that are inconsistent with the regulatory provisions and more restrictive. The issue of making these disbursements without providing the NRC prior written notice has been entered into the EGC corrective action program as Issue Report 4410080.

As of January 1, 2021, Calvert Cliffs Nuclear Power Plant, LLC (Calvert LLC), the owner licensee, entered into trust agreements with a new trustee. The new trust agreements contain provisions consistent with the Calvert Cliffs license conditions. As such, on a going forward basis and while the license conditions exist, EGC, the licensed operator, and/or Calvert LLC will provide advance notice to the NRC of planned disbursements from the trusts for decommissioning planning costs and an opportunity for the NRC to object prior to making such disbursements.

EGC intends in the future to submit a license amendment request to remove the decommissioning license conditions from the Calvert Cliffs Units 1 and 2 licenses and to instead follow the applicable regulations.

There are no regulatory commitments contained within this submittal.

If you have any questions concerning this letter, please contact me at (630) 657-2823.

Respectfully, Patrick R. Simpson Senior Manager - Licensing Exelon Generation Company, LLC cc: NRC Director Office of Nuclear Reactor Regulation Regional Administrator - NRC Region I NRC Senior Resident Inspector - Calvert Cliffs Nuclear Power Plant