ML100700360
| ML100700360 | |
| Person / Time | |
|---|---|
| Site: | River Bend  |
| Issue date: | 03/11/2010 |
| From: | Wang A Plant Licensing Branch IV |
| To: | England L Entergy Operations |
| Wang, A B, NRR/DORL/LPLIV, 415-1445 | |
| Shared Package | |
| ML100700358 | List: |
| References | |
| TAC ME0562 | |
| Download: ML100700360 (2) | |
Text
REQUEST FOR ADDITIONAL INFORMATION BY THE OFFICE OF NUCLEAR REACTOR REGULATION DECOMMISSIONING FINANCIAL ASSURANCE PLANS 2009 BIENNIAL DECOMMISSIONING REVIEW RIVER BEND STATION (70 PERCENT REGULATED), UNIT 1 The NRC staff reviewed the August 13, 2009, letter describing EGSLs proposed plan to cover the shortfall in the amount of decommissioning funding assurance for its 70 percent regulated share of RBS. Based on your Biennial Decommissioning Funding Report, submitted on or about March 31, 2009, the NRC staff projected a shortfall of approximately $164 million as of December 31, 2008. The NRC determined that additional information was needed to complete its review of the plan and by letter dated October 14, 2009 (ADAMS Accession No. ML092680611) provided a Request for Additional Information (RAI). Entergy responded to this request by letter dated November 12, 2009 (ADAMS Accession No. ML093200212).
The Nuclear Regulatory Commission (NRC) staff reviewed the Entergy Operations, Inc.
submittal, dated November 12, 2009, describing the relationship between the licensee, Entergy Gulf States Louisiana (EGSL), and Entergy Texas, Inc. (ETI). The submittal included a copy of the EGSL-ET Power Purchase Agreement (Agreement) and a revision to the Plan for Decommissioning Funding Adjustment.
The following regulation applies to the November 12, 2009 submittal:
§ 50.75(e)(1)(v) Contractual obligation(s) on the part of a licensees customer(s), the total amount of which over the duration of the contract(s) will provide the licensees total share of uncollected funds estimated to be needed for decommissioning pursuant to §§ 50.75(c),
50.75(f), or § 50.82. To be acceptable to the NRC as a method of decommissioning funding assurance, the terms of the contract(s) shall include provisions that the electricity buyer(s) will pay for the decommissioning obligations specified in the contract(s), notwithstanding the operational status either of the licensed power reactor to which the contract(s) pertains or force majeure provisions. All proceeds from the contract(s) for decommissioning funding will be deposited to the external sinking fund. The NRC reserves the right to evaluate the terms of any contract(s) and the financial qualifications of the contracting entity(ies) offered as assurance for decommissioning funding.
The NRC staff has determined that it needs the following additional information to complete its review.
- 1. Provide the total amount anticipated to be provided by ETI over the duration of the EGSL-ET Power Purchase Agreement (Agreement), including a schedule of annual amounts. State the duration of the Agreement. State the basis for calculating the total amount and the schedule of annual amounts, such as whether the amounts presented are in current dollars, and the factors and rates used to project the amounts.
- 2. The Agreement does not appear to specify that the proceeds must be deposited into the external sinking fund. Identify the external sinking fund used to hold the proceeds for decommissioning funding. Describe how the licensee assures that all proceeds for decommissioning funding from the Agreement are deposited into the external sinking fund, including who receives the proceeds, how often proceeds are received, how often proceeds are deposited into the external sinking fund, and the time between receipt and deposit. Describe the degree of discretion, if any, in depositing the proceeds into the fund. State whether the procedure is in written form, and if so, submit a copy of the procedure.
- 3. The Agreement does not appear to define whether the proceeds must be applied solely to decommissioning as defined in 10 CFR 50.2, or whether the proceeds may be applied to other costs. Describe the allocation of the proceeds to decommissioning as defined in 10 CFR 50.2; to the spent fuel management program; and to any other costs that are covered by the total amount. Describe the amount of discretion that may be exercised in allocating the proceeds to the three purposes described and identify who has the authority to make those decisions.
Describe the methods used to identify the amounts held in the fund for each of the purposes listed. State whether the allocation and identification methods are in written form, and if so, submit copies of the methods.
- 4. The November 12, 2009 Plan for Decommissioning Funding Adjustment states that the Public Utilities Commission of Texas (PUCT) regulates approximately 45% of the licensees share of decommissioning costs for the River Bend Station, and that ETI has the obligation for the Texas-jurisdictional share of the decommissioning obligation. However, the Agreement states that ETI is responsible for a 42.5% share of the decommissioning costs. Provide a resolution of the difference in percentage responsibility for ETI as stated in the two documents provided in the November 12, 2009 submittal.
- 5. The Agreement states that it is intended to cover a 42.5% share of the licensees funds estimated to be needed for decommissioning. Calculate the amount of the 42.5% share based on the minimum amount required by § 50.75(c), as of December 31, 2009.
- 6. Describe how the Agreement requires ETI to pay for the decommissioning obligations specified in the contract notwithstanding the operational status either of the licensed power reactor to which the agreement pertains or force majeure provisions.
- 7. Describe the licensees procedure for implementing Section 3 of the Agreement, particularly with respect to how an insufficiency of funds for ETIs share is determined, when the determination is made, and the amount of time within which ETI must pay a deficit to the licensee. State whether the procedure is in written form, and if so, submit a copy of the procedure.
- 8. The November 12, 2009 submittal stated that ETI planned to make a rate filing to the PUCT by the end of 2009. Provide a description of the rate filing, including a summary of the amounts requested, the date the filing was made, and the PUCT docket number of the case. Provide a calculation showing whether ETIs share of decommissioning costs, as of December 31, 2009, would be covered if the amount requested is authorized.