CY-22-004, Independent Spent Fuel Storage Installation - Funding Status Report for Managing Irradiated Fuel and GTCC Waste

Independent Spent Fuel Storage Installation - Funding Status Report for Managing Irradiated Fuel and GTCC Waste

ML22089A101
Person / Time
Site:	Haddam Neck  File:Connecticut Yankee Atomic Power Co icon.png
Issue date:	03/14/2022
From:	Conry T Connecticut Yankee Atomic Power Co
To:	Document Control Desk, Office of Nuclear Material Safety and Safeguards
References
CY-22-004
Download: ML22089A101 (5)

Text

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CONNECTICUT YANKEE ATOMIC HADDAM NECK PLANT 362 INJUN HOLLOW ROAD POWER COMPANY EAST HAMPTON, CT 06424-3099 March 14, 2022 CY-22-004 10 CFR50.4 10 CFR 50.82(a)(8)(vii)

ATTN: Document Control Desk U.S. Nuclear Regulatory Commission Washington, DC 20555 - 0001 Connecticut Yankee Atomic Power Company Haddam Neck Plant Independent Spent Fuel Storage Installation NRC License No. DPR-61 {NRC Docket No. 50-213) *7z_ _ tJ 5 1

Subject:

Funding Status Report for Managing Irradiated Fuel and GTCC Waste On December 5, 1996, Connecticut Yankee Atomic Power Company (CYAPCO) informed the USNRC that the Board of Directors of CYAPCO had decided to permanently cease operations at the Haddam N eek Plant and that fuel had been permanently removed from the reactor (Reference 1). In accordance with 10 CFR 50.82(a)(2), the certifications in the letter modified the CYAPCO license to permanently withdraw CYAPCO's authority to operate the reactor. In 1996, CYAPCO commenced decommissioning the power plant. On November 26, 2007, the NRC released most of the formerly licensed land for unrestricted use, shrinking the licensed land to that utilized to support the Independent Spent Fuel Storage Installation (ISFSI) only (Reference 2). Presently, CYAPCO is storing irradiated fuel and Greater than Class C (GTCC) waste on site until the Department of Energy (DOE) satisfies its contractual obligations to take title and possession of the spent fuel and GTCC waste and remove them from the site.

In Attachment 1, CYAPCO provides the attached Funding Status Report for Managing Irradiated Fuel and GTCC Waste at the Haddam Neck Plant ISFSI to comply with 10 CFR 50.82(a)(8)(vii).

This letter contains no regulatory commitments.

Connecticut Yankee Atomic Power Company CY-22-004\March 14, 2022\Page 2 If you have any questions regarding this letter, please do not hesitate to contact me at (508) 612-3322.

Respectfully,

~nry Treasurer

Attachment:

I. Funding Status Report for Managing Irradiated Fuel and GTCC Waste at the Haddam Neck Plant Independent Spent Fuel Storage Installation (Status as of 12/31/2021)

References:

I. CYAPCO letter to USNRC, "Haddam Neck Plant Certifications of Permanent Cessation of Power Operation and that Fuel Has Been Permanently Removed from the Reactor Vessel,"

dated December 5, 1996

2. USNRC letter to CYAPCO, "Haddam Neck Plant - Release of Land from Part 50 License,"

dated November 26, 2007 cc: D. Lew, NRC Region I Administrator A. Dimitriadis, Chief, Decommissioning Branch, NRC, Region 1 Y. Diaz-Sanabria, Chief, Division of Fuel Management, Storage and Transportation Licensing Branch J. Semancik, Director, CT DEEP, Radiation Division

ATTACHMENT 1 TO CY-22-004 FUNDING STATUS REPORT FOR THE MANAGING OF IRRADIATED FUEL AND GTCC WASTE AT THE HADDAM NECK PLANT INDEPENDENT SPENT FUEL STORAGE INSTALLATION (STATUS AS OF 12/31/2021)

Attachment 1 to CY-22-004 Funding Status Report for the Managing of Irradiated Fuel and GTCC Waste at the Haddam Neck Plant Independent Spent Fuel Storage Installation (Status as of 12/31/2021) 10 CFR Requirement Response Comment 10 CFR 50.82(a)(8)(vii) Requirements

1. The amount of funds accumulated ~$186.7 Connecticut Yankee Atomic Power Company (CYAPCO) has established an account to cover the cost of managing the million (as of within its Nuclear Decommissioning Trust (NDT) entitled, "ISFSI Radiological irradiated fuel. 12/31/2021) Decom" that segregates the funds for decommissioning of the Haddam Neck Plant Independent Spent Fuel Storage Installation (ISFSI) from the larger balance offunds for ongoing management of irradiated fuel and Greater than Class C (GTCC) waste, and the pre-1983 Department of Energy (DOE) Spent Fuel Obligation held in the NDT. The market balance represented here as of December 31, 2021 excludes the funds set-aside for decommissioning the ISFSI.

2. The projected cost of managing ~$249.5 The current cost estimate for management of spent fuel and Greater than Class C irradiated fuel until title to the million (2022 (GTCC) waste was submitted to the NRC on December 10, 2021.

fuel and possession of the fuel is -2038*)

transferred to the Secretary of (In 2021

• Currently, the irradiated fuel and GTCC waste are scheduled to be removed from the Energy. dollars) site by 2038, with decommissioning, license termination, and business closure occurring after that time period.

3. If the funds accumulated do not See Comment The Company has several methods of obtaining additional funds to cover projected cover the projected cost, a plan to costs.

obtain additional funds to cover the cost. First, CYAPCO may collect 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 CYAPCO, including the ongoing costs of managing irradiated fuel and GTCC waste, and the costs associated with CYAPCO's pre-1983 DOE Spent Fuel Obligation. Pursuant to these power contracts, CYAPCO has the ongoing ability to seek collections from its purchasers for additional funds that may be required to cover these costs.

Second, CYAPCO has received proceeds from the successful litigation of several phases of its breach of contract damages claims against the DOE for failure to begin the removal of spent nuclear fuel (SNF) and GTCC waste from the site in 1998. CYAPCO Page 1 of2

Attachment to CY-22-004 Funding Status Report for the Managing oflrradiated Fuel and GTCC Waste at the Haddam Neck Plant Independent Spent Fuel Storage Installation (Status as of 12/31/2021) 10 CFR Requirement Response Comment will continue to file claims against the DOE as long as the DOE continues to breach its contract obligations related to SNF and GTCC waste.

A CYAPCO FERC filing approved in Jun~ 2013, implemented a fifteen-year funding mechanism. Until the 2013 FERC filing, the Company had employed a "full funding" assumption in developing funding requirements. The fifteen-year funding mechanism was put in place to incorporate the potential for the receipt of future DOE breach of contract damages as a source of funding. If future damage recovery does not occur, the Company can apply to FERC for more funding, if necessary. The approved FERC filing also requires CYAPCO to provide an informational filing regarding the adequacy of funding if five years pass without receipt of damage awards from litigation with the DOE.

Third, CYAPCO expects to utilize the investment return on Decommissioning Trust assets to offset future costs. The current assumed rate of investment return, after fees and taxes is 4.0%.

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