ML13184A323

South Texas Project, Units 1 and 2 - Request for Additional Information Email - Decommissioning Funding Status Report (TAC Nos. MF2248 and MF2249)

ML13184A323
Person / Time
Site:	South Texas
Issue date:	07/03/2013
From:	Singal B K Plant Licensing Branch IV
To:	Paul J South Texas
Singal B K
References
TAC MF2248, TAC MF2249
Download: ML13184A323 (3)

Text

1Burkhardt, JanetFrom:Singal, BalwantSent:Wednesday, July 03, 2013 1:38 PMTo:'Paul, Jamie' (jpaul@STPEGS.COM)Cc:Morris, James [jrmorris@STPEGS.COM] (jrmorris@STPEGS.COM)Subject:Request for Additional Information - Decommissiong Funding Status Report (TACs MF2248 and MF2249)Attachments:MF2248-RAI.docxJamie, By letter dated April 25, 2013, (Agencywide Documents Access and Management System (ADAMS) Accession No. ML13142A196), pursuant to Title 10 of the Code of Federal Regulations (10 CFR), Paragraph 50.75(f)(1), STP Nuclear Operating Company (STPNOC) submitted Decommissioning Funding Report to the U.S. Nuclear Regulatory Commission (NRC) for South Texas Project, Units 1 and 2.

Based on the review of your application, the NRC staff has the attached Request for Additional Information (RAI). Please treat this e-mail as formal RAI request.

A Draft RAI was forwarded to Mr. Jamie Paul on June 26, 2013. The NRC staff was informed by Mr. Jamie Paul on July 3, 2013 that a clarification call is not needed. You are requested to provide your response within 30 days from the date of this e-mail. Thanks.

Balwant K. Singal Senior Project Manager (Comanche Peak and STP) Nuclear Regulatory Commission Division of Operating Reactor Licensing Balwant.Singal@nrc.gov Tel: (301) 415-3016 Fax: (301) 415-1222 REQUEST FOR ADDITIONAL INFORMATION (RAI) STP NUCLEAR OPERATING COMPANY SOUTH TEXAS PROJECT, UNITS 1 AND 2 DECOMMISSIONING FUNDING STATUS REPORT DOCKET NUMBERS 50-498 AND 50-499 (TAC NOS. MF2248 AND MF2249)

RAI #1: Citation for real rate of returns As stated in Title 10 of the Code of Federal Regulations (10 CFR), paragraph 50.75(f)(1), the information in [the Decommissioning Funding Status (DFS)] report must include [. . .] the assumptions used regarding rates of escalation in decommissioning costs, rates of earnings on decommissioning funds, and rates of other factors used in funding projections. . .

By letter dated April 25, 2013 (Agencywide Documents Access and Management System (ADAMS) Accession No. ML13142A196), STP Nuclear Operating Company (STPNOC) reported the following for City of Austin - Austin Energy:

• 4.913% rate of escalation in decommissioning costs for South Texas Project (STP), Units 1 and 2, and

• 2.94% rate of earnings on decommissioning funds for STP 1 and 2.

Please provide the basis for the assumptions used by City of Austin - Austin Energy regarding rates of escalation in decommissioning costs, rate of earnings on decommissioning funds, and rates of other factors assumed in your DFS report. Please verify the reported escalation and earnings rate and provide a calculated real rate of return.

RAI #2: Reporting Requirements The provisions of 10 CFR 50.75(f)(1) and (2) require the licensee to report the amount of funds accumulated to the end of the calendar year preceding the report. By letter dated April 25, 2013, STPNOC provided the amounts accumulated in the decommissioning trust funds at the end of the calendar year preceding the date of the report for items included in 10 CFR 50.75 (b) and (c) for each licensee. As reported by STPNOC, the fund balances for NRG and City Public Service Board of San Antonio as of December 31, 2012, include "funds accumulated based upon a site-specific study that includes license termination and other costs." Please clarify the meaning of "other costs" and indicate what portion of the NRG and City Public Service Board of San Antonio accumulated fund balances for STP, Units 1 and 2, are designated for radiological decommissioning activities only. Please specify if any of the accumulated funds for STP, Units 1 and 2 are for non-radiological decommissioning costs.

RAI #3: Amounts accumulated The provisions of 10 CFR 50.75(f)(1) and (2) require the licensee to report the amount of funds accumulated to the end of the calendar year preceding the report. In its letter dated April 25, 2013, STPNOC did not state if the amount of decommissioning funds accumulated was an after-tax amount.

Please provide the after-tax amount of funds accumulated through December 31, 2012 for all licensees.