ML080790293
| ML080790293 | |
| Person / Time | |
|---|---|
| Site: | Vermont Yankee File:NorthStar Vermont Yankee icon.png |
| Issue date: | 03/25/2008 |
| From: | James Kim NRC/NRR/ADRO/DORL/LPLI-1 |
| To: | Entergy Nuclear Operations |
| kim J, NRR/ADRO/DORL, 415-4125 | |
| References | |
| FOIA/PA-2009-0026, TAC MD8051 | |
| Download: ML080790293 (8) | |
Text
March 25, 2008 Vice President, Operations Entergy Nuclear Operations, Inc.
Vermont Yankee Nuclear Power Station P.O. Box 250 Governor Hunt Road Vernon, VT 05354
SUBJECT:
REQUEST FOR ADDITIONAL INFORMATION TO SUPPORT THE REVIEW OF THE VERMONT YANKEE NUCLEAR POWER STATION PRELIMINARY COST ESTIMATE PURSUANT TO 10 CFR 50.75(f)(3) (TAC NO. MD8051)
Dear Sir or Madam:
By letter dated February 6, 2008, Entergy Nuclear Operations, Inc. (the licensee) submitted the Vermont Yankee Nuclear Power Station decommissioning cost estimate report pursuant to 10 CFR 50.75(f)(3) for review.
The Nuclear Regulatory Commission staff has been reviewing the submittal and has determined that additional information is needed to complete its review. The specific questions are found in the enclosed request for additional information (RAI). A response to this RAI is requested to be provided within 30 days.
Sincerely,
/RA/
James Kim, Project Manager Plant Licensing Branch I-1 Division of Operating Reactor Licensing Office of Nuclear Reactor Regulation Docket No. 50-271
Enclosure:
As stated cc w/encl: See next page
ML080790293 OFFICE LPLI-1/PM LPLI-1/LA LPLI-1/BC NAME JKim SLittle MKowal DATE 3/20/08 3/24/08 3/25/08
REQUEST FOR ADDITIONAL INFORMATION BY THE OFFICE OF NUCLEAR REACTOR REGULATION TO SUPPORT THE REVIEW OF THE VERMONT YANKEE NUCLEAR POWER STATION DECOMMISSIOINING COST ESTIMATE
Background:
Title 10 of the Code of Federal Regulations (10 CFR) 50.75(f)(3) requires that a licensee
...shall at or about 5 years prior to the projected end of operations submit a preliminary decommissioning cost estimate [herein referred to as the preliminary cost estimate] which includes an up-to-date assessment of the major factors that could affect the cost to decommission.
If necessary, as required by 10 CFR 50.75(f)(5), the preliminary cost estimate shall also include plans for adjusting levels of funds to demonstrate a reasonable level of assurance that funds will be available to cover the cost of decommissioning.
RAI No. 1:
Entergys submittal (BVY 08-010) for Vermont Yankee (VY) entitled, Report Pursuant to 10 CFR 50.75(f)(3) dated February 6, 2008, included a cost estimate for various decommissioning options. Table 3.1, Table 3.3, Table 3.5, and Table 3.7 identified the cost and annual expenditures for each of the selected alternatives. Entergy needs to provide an assessment of the trust fund amount as of December 31, 2007, to determine if sufficient funds would be available to fund the designated scenario.
RAI No. 2:
While the submittal identified the expenses associated with decommissioning scenarios, it did not include the plan, required by 50.75(f)(5), to adjust funding levels to demonstrate a reasonable level of financial assurance, if necessary.
NRC regulations allow a licensee to take a 2% real rate of return earnings credit on trust balances unless a higher rate is authorized by a regulated licensees public utility commission.
VY is not rate regulated, so the staff applied a 2% real rate of return on the trust fund balance
($416.5 million as of December 31, 2006) based on the regulation and deducted the expenses identified in submittal. The NRC staffs result for the scenario analyzed was that sufficient funds were not available to decommission VY. The review was based on one of the scenarios that used a current license expiration date of 2012. How does the licensee intend to adjust funding levels, if required?
Enclosure
RAI No. 3:
The submittal identified the estimated costs associated with the selected decommissioning scenarios in 2006 dollars. Recent media reports concerning construction costs indicates a significant increase in material and labor costs over general inflation. In light of such reports, what escalation factor will be used by Entergy to escalate the decommissioning costs to 2008 dollars? For the staff to complete their evaluation, the decommissioning cost, in 2008 dollars, is necessary for staff to determine if sufficient funds are available for the designated scenarios.
RAI No. 4:
Since the VYs projected end of operation is less than 5 years based on its license expiration date, the licensee is required by 10 CFR 50.75(f)(2) to submit annually their decommissioning funding report rather than biennially. Provide the amount in the trust fund as of December 31, 2007, as well as the revised formula amount because the staff will need to factor this information into the staffs analysis.
Vermont Yankee Nuclear Power Station cc:
Regional Administrator, Region I U. S. Nuclear Regulatory Commission 475 Allendale Road King of Prussia, PA 19406-1415 Mr. David R. Lewis Pillsbury, Winthrop, Shaw, Pittman, LLP 2300 N Street, N.W.
Washington, DC 20037-1128 Mr. David O=Brien, Commissioner Vermont Department of Public Service 112 State Street Montpelier, VT 05620-2601 Mr. James Volz, Chairman Public Service Board State of Vermont 112 State Street Montpelier, VT 05620-2701 Chairman, Board of Selectmen Town of Vernon P.O. Box 116 Vernon, VT 05354-0116 Operating Experience Coordinator Vermont Yankee Nuclear Power Station 320 Governor Hunt Road Vernon, VT 05354 G. Dana Bisbee, Esq.
Deputy Attorney General 33 Capitol Street Concord, NH 03301-6937 Chief, Safety Unit Office of the Attorney General One Ashburton Place, 19th Floor Boston, MA 02108 Ms. Carla A. White, RRPT, CHP Radiological Health Vermont Department of Health P.O. Box 70, Drawer #43 108 Cherry Street Burlington, VT 05402-0070 Ms. Charlene D. Faison Manager, Licensing Entery Nuclear Operations 440 Hamilton Avenue White Plains, NY 10601 Resident Inspector Vermont Yankee Nuclear Power Station U. S. Nuclear Regulatory Commission P.O. Box 176 Vernon, VT 05354 Director, Massachusetts Emergency Management Agency ATTN: James Muckerheide 400 Worcester Rd.
Framingham, MA 01702-5399 Jonathan M. Block, Esq.
Main Street P.O. Box 566 Putney, VT 05346-0566 Mr. John F. McCann Director, Nuclear Safety & Licensing Entergy Nuclear Operations, Inc.
440 Hamilton Avenue White Plains, NY 10601 Mr. Michael R. Kansler President & CEO / CNO Entergy Nuclear Operations 1340 Echelon Parkway Jackson, MS 39213
Vermont Yankee Nuclear Power Station cc:
Mr. John T. Herron Sr. Vice President Entergy Nuclear Operations, Inc.
1340 Echelon Parkway Jackson, MS 39213 Mr. William F. Maguire General Manager, Plant Operations Entergy Nuclear Operations Vermont Yankee Nuclear Power Station 320 Governor Hunt Road Vernon, VT 05354 Mr. Oscar Limpias Vice President, Engineering Entergy Nuclear Operations 1340 Echelon Parkway Jackson, MS 39213 Mr. John A. Ventosa GM, Engineering Entergy Nuclear Operations 440 Hamilton Avenue White Plains, NY 10601 Mr. Joseph P. DeRoy VP, Operations Support Entergy Operations, Inc.
1340 Echelon Parkway Jackson, MS 39213 Mr. John R. Dreyfuss Director, NSA Entergy Nuclear Operations Vermont Yankee Nuclear Power Station 320 Governor Hunt Road Vernon, VT 05354 Mr. David J. Mannai Manager, Licensing Entergy Nuclear Operations Vermont Yankee Nuclear Power Station P.O. Box 500 185 Old Ferry Road Brattleboro, VT 05302-0500 Mr. Christopher Schwarz Vice President, Operations Support Entergy Nuclear Operations, Inc.
440 Hamilton Avenue White Plains, NY 10601 Mr. Michael J. Colomb Director of Oversight Entergy Nuclear Operations, Inc.
440 Hamilton Avenue White Plains, NY 10601 Mr. William C. Dennis Assistant General Counsel Entergy Nuclear Operations, Inc.
440 Hamilton Avenue White Plains, NY 10601 Mr. Theodore Sullivan Site Vice President Entergy Nuclear Operations, Inc.
Vermont Yankee Nuclear Power Station P.O. Box 500 185 Old Ferry Road Brattleboro, VT 05302-0500 Mr. James H. Sniezek 5486 Nithsdale Drive Salisbury, MD 21801 Mr. Garrett D. Edwards 814 Waverly Road Kennett Square, PA 19348 Ms. Stacey M. Lousteau Treasury Department Entergy Services, Inc.
639 Loyola Avenue New Orleans, LA 70113
Vermont Yankee Nuclear Power Station cc:
Mr. Norman L. Rademacher Director, NSA Vermont Yankee Nuclear Power Station P.O. Box 0500 185 Old Ferry Road Brattleboro, VT 05302-0500 Mr. Raymond Shadis New England Coalition Post Office Box 98 Edgecomb, ME 04556 Mr. James P. Matteau Executive Director Windham Regional Commission 139 Main Street, Suite 505 Brattleboro, VT 05301 Mr. William K. Sherman Vermont Department of Public Service 112 State Street Drawer 20 Montpelier, VT 05620-2601 Mr. Michael D. Lyster 5931 Barclay Lane Naples, FL 34110-7306