ML14085A017
| ML14085A017 | |
| Person / Time | |
|---|---|
| Site: | Yankee Rowe |
| Issue date: | 03/11/2014 |
| From: | Pizzella C M Yankee Atomic Electric Co |
| To: | Document Control Desk, Office of Nuclear Material Safety and Safeguards |
| References | |
| BYR 2014-014 | |
| Download: ML14085A017 (10) | |
Text
C Y A YANKEE ATOMIC ELECTRIC COMPANY49 Yankee Road, Rowe, Massachusetts 01367March 11, 2014BYR 2014-01410 CFR 50.410 CFR 50.75(f)(1) and (2)10 CFR 50.82(a)(8)(v) and (vi)ATTN: Document Control DeskU.S. Nuclear Regulatory Commission Washington, DC 20555 -0001Yankee Atomic Electric CompanyYankee Nuclear Power Station Independent Spent Fuel Storage Installation NRC License No. DPR-3 (NRC Docket Nos.50-029 and 72-31)
Subject:
Decommissioning Funding Assurance Status ReportOn February 26, 1992, Yankee Atomic Electric Company (YAEC) informed the USNRC that theBoard of Directors of YAEC had decided to permanently cease operations at the Yankee NuclearPower Station and that fuel had been permanently removed from the reactor (Reference 1). Inaccordance with 10 CFR 50.82(a)(2),
the certifications in the letter modified the YAEC licenseto permanently withdraw YAEC's authority to operate the reactor.
In 1993, YAEC commenced decommissioning the power plant. On August 10, 2007, the NRC released most of the formerlylicensed land for unrestricted use, shrinking the licensed land to the Independent Spent FuelStorage Installation (ISFSI) only (Reference 2). The only decommissioning activities that remainare those associated with the decommissioning of the Yankee Nuclear Power Station ISFSI,which is currently scheduled to be completed in calendar year 2032, after the Department ofEnergy (DOE) removes the irradiated fuel and Greater than Class C (GTCC) waste.In Attachment 1, YAEC provides the attached Decommissioning Funding Assurance StatusReport for the Yankee Nuclear Power Station ISFSI to comply with 10 CFR 50.75(f)(1) and (2)and 10 CFR 50.82(a)(8)(v) and (vi).This letter contains no regulatory commitment If you have any questions regarding this letter, please do not hesitate to contact me at(860) 267-6426 x304.R.sp tfully,Carla 4M. izzellaVice President, Chief inancial
- Officer, and Treasurer Yankee Atomic Electric CompanyBYR 2014-014\March 11, 2014\Page 2
Attachment:
- 1. Decommissioning Funding Status Report for the Yankee Nuclear Power Station Independent Spent Fuel Storage Installation (Status as of 12/31/2013)
References:
- 1. A. C. Kadak (YAEC) letter to USNRC, "Permanent Cessation of Power Operations at theYankee Nuclear Power Station,"
BYR-92-024, dated February 26, 19922. USNRC letter to Yankee Atomic Power Company, "Yankee Nuclear Power Station -Releaseof Land from Part 50 License,"
dated August 10, 2007icc: W. M. Dean, NRC Region I Administrator M. S. Ferdas, Chief, Decommissioning Branch, NRC, Region 1J. Goshen, NRC Project ManagerJ. Giarrusso,
- Planning, Preparedness
& Nuclear Section Chief, MEMAJ. Cope-Flanagan, Assistant General Counsel, MDPUJ. Reyes, State of Massachusetts Office of the Attorney General BYR 2014-014ATTACHMENT 1DECOMMISSIONING FUNDING STATUS REPORT FOR THEYANKEE NUCLEAR POWER STATIONINDEPENDENT SPENT FUEL STORAGE INSTALLATION (STATUS AS OF 12/31/2013)
March 2014 Attachment 1 to BYR 2014-014Decommissioning Funding Status Report for theYankee Nuclear Power Station Independent Spent Fuel Storage Installation (Status as of 12/31/2013) 10 CFR Requirement Response Comment10 CFR 50.75(0(1) and (2) Requirements
- 1. The amount of decommissioning
$8.7 million 10 CFR 50.75(c) provides the calculation basis for determining minimum amounts offunds estimated to be required (in 2013 funding required to demonstrate reasonable assurance of funds for decommissioning.
pursuant to 10 CFR 50.75 (b) and dollars)
- However, the methodology does not take into consideration work that has already been(c) completed.
In 1993, YAEC commenced decommissioning the power plant. On August 10,2007, the NRC released most of the formerly licensed land for unrestricted use, shrinking the licensed land to the Independent Fuel Storage Installation (ISFSI).
Thus, the onlydecommissioning activities and decommissioning funding requirements that remain arethose associated with the decommissioning of the Yankee Nuclear Power Station ISFSI,which is currently scheduled to be completed in calendar year 2032, after the Department of Energy (DOE) removes the irradiated fuel and Greater than Class C (GTCC) waste.On December 17, 2012, YAEC provided a decommissioning funding plan for the YankeeNuclear Power Station ISFSI in accordance with 10 CFR 72.30(b)(2) that included arevised Decommissioning Cost Estimate (DCE) for the Yankee Nuclear Power StationISFSI.2. The amount accumulated at the $9.8 million Yankee Atomic Electric Company (YAEC) has established an account within itsend of the calendar year preceding (as of Nuclear Decommissioning Trust (NDT) entitled "ISFSI Radiological Decom" thatthe date of the report for items 12/31/13) segregates the funds for decommissioning of the ISFSI from the larger balance of fundsincluded in 10 CFR 50.75 for ongoing management of irradiated fuel and GTCC waste held in the NDT. This(e)(1)(i) market balance only reflects the funds in the segregated account for decommissioning the ISFSI.3. Schedule of the annual amounts $3.0 million Pursuant to YAEC's most recent FERC filing that was approved in June, 2013, YAECremaining to be collected is collecting
$252,542 per month through 2014.Including amounts beyond thoserequired in 10 CFR 50.75(e)(1)(i)
- Years to collect 1 YearPage 1 of 7 Attachment 1 to BYR 2014-014Decommissioning Funding Status Report for theYankee Nuclear Power Station Independent Spent Fuel Storage Installation (Status as of 12/31/2013) 10 CFR Requirement Response Comment4. The assumptions used regarding No additional comments.
escalation of thedecommissioning cost estimate, rates of earnings ondecommissioning funds, and ratesof other factors used in fundingprojections are:Annual escalation rate 2.5%Annual after-tax earnings rate ondecommissioning trust funds 4.5%Other factors assumed None5. Any contracts upon which the Yes YAEC is currently collecting funds through its power contracts and amendatory licensee is relying pursuant to 10 agreements under FERC regulation.
The power contracts and the amendatory CFR 50. 75(e)(1)(ii)(A) agreements specify the obligations of the purchasers for the costs of YAEC, including decommissioning costs. Such contracts have been filed with FERC.6. Any modifications to a licensee's None No additional comments.
current method of providing financial assurance occurring since the last submitted report.7. Any material changes to trust None No additional comments.
agreements.
Page 2 of 7 Attachment 1 to BYR 2014-014Decommissioning Funding Status Report for theYankee Nuclear Power Station Independent Spent Fuel Storage Installation (Status as of 12/31/2013) 10 CFR Requirement Response Comment10 CFR 50.82(a)(8)(v)
(A) through (D Requirements
- 1. The amount spent on In 1993, YAEC commenced decommissioning the power plant. On August 10, 2007,decommissioning, both: the NRC released most of the formerly licensed land for unrestricted use, shrinking thelicensed land to the ISFSI. The only decommissioning activities that remain are thoseCumulative
$0 (Refer to associated with the decommissioning of the Yankee Nuclear Power Station ISFSI,dComment) which is currently scheduled to be completed in calendar year 2032, after the DOEand Cremoves the irradiated fuel and GTCC waste.Over the previous calendar year $0 10 CFR 50.82(a)(8)(v) became effective on December 17, 2012. At that time, the onlyareas that were within the control of the Operating License No. DPR-3 were thoseassociated with the Yankee Nuclear Power Station ISFSI. Thus, YAEC is onlypresenting the information associated with the decommissioning of the areas that remainwithin the control of Operating License No. DPR-3.Presently, YAEC is storing irradiated fuel and GTCC waste on site until it is removedby the DOE. Decommissioning of the Yankee Nuclear Power Station ISFSI is currently scheduled to be completed in calendar year 2032, after the DOE removes the irradiated fuel and GTCC waste. Thus, the cumulative cost spent on decommissioning the YankeeNuclear Power Station ISFSI is $0, and the amount spent in calendar year 2013 is $0.2. The remaining balance of any $9.8 million YAEC has established an account within its NDT entitled "ISFSI Radiological Decom"decommissioning funds. that segregates the funds for decommissioning of the ISFSI from the larger balance offunds for ongoing management of irradiated fuel and GTCC waste held in the NDT.This market balance only reflects the funds in the segregated account fordecommissioning the ISFSI.Page 3 of 7 Attachment 1 to BYR 2014-014Decommissioning Funding Status Report for theYankee Nuclear Power Station Independent Spent Fuel Storage Installation (Status as of 12/31/2013) 10 CFR Requirement I Response
[ Comment3. The amount provided by other $0 As of 12/31/13, YAEC's NDT account entitled "ISFSI Radiological Decom" has afinancial assurance methods being balance sufficient to cover the estimated cost of the remaining radiological relied upon decommissioning of the ISFSI. However, if in the future, the balance in the account isnot fully funded to cover the estimated cost of the remaining radiological decommissioning of the ISFSI, the Company has several methods of obtaining additional funds, if required, to cover projected costs.First, YAEC is currently collecting funds through its power contracts and amendatory agreements under FERC regulation.
The power contracts and the amendatory agreements specify the obligations of the purchasers for the costs of YAEC, including decommissioning.
Pursuant to these power contracts, YAEC has the ongoing ability toseek collections from its purchasers for additional funds that may be required to coverthese costs.Second, YAEC has received proceeds from the successful litigation of the first phase ofits breach of contract damages claims against the DOE for failure to begin the removalof spent nuclear fuel (SNF) and GTCC waste from the site in 1998. In addition, YAECis expecting the proceeds from the successful litigation of the second phase of its breachof contract damages claim against the DOE. YAEC will continue to file claims againstthe DOE as long as the DOE continues to breach its contract obligations related to SNFand GTCC waste. To that end, in August, 2013 the Company filed a third round ofclaims against the DOE seeking damages for the years 2009 -2012. Each of theseprospective claims will likely result in the receipt of proceeds that can be used to offsetfuture costs, if required.
Accordingly, YAEC's most recent FERC filing which was approved in June, 2013,implemented a fifteen year funding mechanism.
Until the 2013 FERC filing, theCompany had employed a "full funding" assumption in developing fundingrequirements.
The fifteen year funding mechanism was put in place to incorporate thepotential for the receipt of future DOE breach of contract damages as a source offunding as discussed above. If future damage recovery does not occur, the Company hasPage 4 of 7 Attachment 1 to BYR 2014-014Decommissioning Funding Status Report for theYankee Nuclear Power Station Independent Spent Fuel Storage Installation (Status as of 12/31/2013) 10 CFR Requirement Response Commentthe ability to apply to FERC for more funding, if necessary.
The approved FERC filingalso requires YAEC to provide an information filing regarding the adequacy of fundingif five years pass without receipt of damage awards from litigation with the DOE.Third, YAEC expects to utilize the investment return on Decommissioning Trust assetsas a funding source. The current assumed rate of investment return, after fees and taxes,is 4.5%.4. An estimate of the costs to $8.7 million On December 17, 2012, YAEC provided a decommissioning funding plan incomplete decommissioning, (in 2013 accordance with 10 CFR 72.30(b)(2) that included a revised DCE for the Yankee Nuclearreflecting any difference between dollars)
Power Station ISFSI.actual and estimated costs forwork performed during the year.5. The decommissioning criteria 10 CFR The assumptions regarding the decommissioning cost estimate are provided in the DCEupon which the estimate is based 20.1402 for the Yankee Nuclear Power Station ISFSI provided on December 17, 2012.6. Any modifications occurring to a None No additional comment.licensee's current method ofproviding financial assurance since the last submitted report.7. Any material changes to trust None No additional commentagreements or financial assurance contracts.
Page 5 of 7 Attachment 1 to BYR 2014-014Decommissioning Funding Status Report for theYankee Nuclear Power Station Independent Spent Fuel Storage Installation (Status as of 12/31/2013) 10 CFR 50.82(a)(8)(vi)
Requirement
- 1. Additional financial assurance None As of 12/31/13, YAEC's NDT account entitled "ISFSI Radiological Decom" has arequired to cover the estimate cost balance sufficient to cover the estimated cost of the remaining radiological of completion.
decommissioning of the ISFSI. However, if in the future, the balance in the account isnot fully funded to cover the estimated cost of the remaining radiological decommissioning of the ISFSI, the Company has several methods of obtaining additional funds, if required, to cover projected costs.First, YAEC is currently collecting funds through its power contracts and amendatory agreements under FERC regulation.
The power contracts and the amendatory agreements specify the obligations of the purchasers for the costs of YAEC, including decommissioning.
Pursuant to these power contracts, YAEC has the ongoing ability toseek collections from its purchasers for additional funds that may be required to coverthese costs.Second, YAEC has received proceeds from the successful litigation of the first phase ofits breach of contract damages claims against the DOE for failure to begin the removalof spent nuclear fuel (SNF) and GTCC waste from the site in 1998. In addition, YAECis expecting the proceeds from the successful litigation of the second phase of its breachof contract damages claim against the DOE. YAEC will continue to file claims againstthe DOE as long as the DOE continues to breach its contract obligations related to SNFand GTCC waste. To that end, in August, 2013 the Company filed a third round ofclaims against the DOE seeking damages for the years 2009 -2012. Each of theseprospective claims will likely result in the receipt of proceeds that can be used to offsetfuture costs, if required.
Accordingly, YAEC's most recent FERC filing which was approved in June, 2013,implemented a fifteen year funding mechanism.
Until the 2013 FERC filing, theCompany had employed a "full funding" assumption in developing fundingrequirements.
The fifteen year funding mechanism was put in place to incorporate thepotential for the receipt of future DOE breach of contract damages as a source offunding as discussed above. If future damage recovery does not occur, the Company hasPage 6 of 7 Attachment 1 to BYR 2014-014Decommissioning Funding Status Report for theYankee Nuclear Power Station Independent Spent Fuel Storage Installation (Status as of 12/31/2013) the ability to apply to FERC for more funding, if necessary.
The approved FERC filingalso requires YAEC to provide an information filing regarding the adequacy of fundingif five years pass without receipt of damage awards from litigation with the DOE.Third, YAEC expects to utilize the investment return on Decommissioning Trust assetsas a funding source. The current assumed rate of investment return, after fees and taxes,is 4.5%.Page 7 of 7