ML20117K529

Provides Notification That Util Will Be Revising Financial Assurance Mechanism That Will Be Used to Cover Remaining Costs of Decommissioning Plant

ML20117K529
Person / Time
Site:	Fort Saint Vrain
Issue date:	09/04/1996
From:	Borst F PUBLIC SERVICE CO. OF COLORADO
To:	Weber M NRC (Affiliation Not Assigned), NRC OFFICE OF INFORMATION RESOURCES MANAGEMENT (IRM)
References
P-96075, NUDOCS 9609110340
Download: ML20117K529 (2)

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16805 WCR service-191/2; Platteville, Colorado 80651 September 4,1996 Fort St. Vrain P-96075 U.S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington, D.C. 20555 ATrN: Mr. Michael F. Weber, Chief Decommissioning and Regulatory Issues Branch Docket No. 50-267 l

SUBJECT:

Maancial Assurance Mechanism for Fort St. Vrain Decommissioning Costs

Dear Mr. Weber:

i This letter provides notification that Public Service Company of Colorado (PSCo) is revising the financial assurance mechanism that will be used to cover the remaining costs ' i of decommissioning the Fort St. Vrain (FSV) Station. As described in Section 5.3 of the i FSV Decommissioning Plan, the current funding mechanism is an irrevocable Letter of l Credit. The provisions of 10 CFR 50.75(e)(1)(iii)(c) require that a surety method such j as a Letter of Credit must be maintained in effect until the 10 CFR Part 50 license is  ;

terminated. PSCo's current letter of Credit expires on December 4,1996, and we do l not expect the FSV license to be terminated until early 1997.

By December 4,1996, all physical decommissioning activities will be complete and the l final survey report will have been submitted, along with our request to terminate the FSV  !

10 CFR Part 50 license. Remaining decommissioning activities will be certain l administrative functions required by the FSV Decommissioning Technical Specifications I' and other activities necessary to support NRC review of our license termination request.

To provide financial assurance for these remaining decommissioning activities, PSCo has determined that it would be more cost effective to establish a trust fund than to renew the Letter of Credit. Therefore, within the next three months, we will execute a Trust Agreement with the Wells Fargo Bank to provide for payment of the remaining decommissioning costs of the FSV facility. -This prepayment funding assurance mechanism is in accordance with the provisions of 10 CFR 50.75, paragraphs (e)(1)(i) and (e)(3)(i).

t 9609110340 960904 PDR ADOCK 05000267 /h O W PDR l

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P-96095

' September 4,1996 Page 2 If you have any questions regarding this information, please contact Mr. M. H. Holmes at (303) 620-1701.

Sincerely, l hbhd fDPP Frederic J. Borst Decommissioning Program Director i

FJB/SWC Attachment cc: Regional Administrator, Region IV Mr. Robert M. Quillin, Director Radiation Control Division Colorado Department of Public Health and Environment i

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