ML18082A097: Difference between revisions

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{{#Wiki_filter:MAINE YANKEE 321 Old Ferry Road, Wiscasset, Maine 04578 March 5, 2018 OMY-18-007 10 CFR50.4 10 CFR 50.75(t)(l) and (2) 10 CFR 50.82(a)(8)(v) and (vi)
{{#Wiki_filter:MAINE YANKEE 321 Old Ferry Road, Wiscasset, Maine 04578 ATTN: Document Control Desk U.S. Nuclear Regulatory Commission Washington, DC 20555 - 0001 March 5, 2018 OMY-18-007 10 CFR50.4 10 CFR 50.75(t)(l) and (2) 10 CFR 50.82(a)(8)(v) and (vi)
ATTN: Document Control Desk U.S. Nuclear Regulatory Commission Washington, DC 20555 - 0001 Maine Yankee Atomic Power Company Maine Yankee Independent Spent Fuel Storage Installation NRC License No. DPR-36 (NRC Docket No. 50-309)
Maine Yankee Atomic Power Company Maine Yankee Independent Spent Fuel Storage Installation NRC License No. DPR-36 (NRC Docket No. 50-309)  


==Subject:==
==Subject:==
Decommissioning Funding Assurance Status Report On August 7, 1997, Maine Yankee Atomic Power Company (Maine Yankee) informed the USNRC that the Board of Directors of Maine Yankee had decided to permanently cease operations at the Maine Yankee 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 Maine Yankee license to permanently withdraw Maine Yankee's authority to operate the reactor. In 1998, Maine Yankee commenced decommissioning the power plant. On September 30, 2005, the NRC amended the Maine Yankee license, releasing most of the formerly licensed land for unrestricted use, shrinking the licensed land to the Independent Spent Fuel Storage Installation (ISFSI) only (Reference 2). The only decommissioning activities that remain are those associated with the decommissioning of the Maine Yankee ISFSI, which is currently scheduled to occur after the Department of Energy (DOE) removes the irradiated fuel and Greater than Class C (GTCC) waste.
Decommissioning Funding Assurance Status Report On August 7, 1997, Maine Yankee Atomic Power Company (Maine Yankee) informed the USNRC that the Board of Directors of Maine Yankee had decided to permanently cease operations at the Maine Yankee 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 Maine Yankee license to permanently withdraw Maine Yankee's authority to operate the reactor. In 1998, Maine Yankee commenced decommissioning the power plant. On September 30, 2005, the NRC amended the Maine Yankee license, releasing most of the formerly licensed land for unrestricted use, shrinking the licensed land to the Independent Spent Fuel Storage Installation (ISFSI) only (Reference 2). The only decommissioning activities that remain are those associated with the decommissioning of the Maine Yankee ISFSI, which is currently scheduled to occur after the Department of Energy (DOE) removes the irradiated fuel and Greater than Class C (GTCC) waste.
In Attachment 1, Maine Yankee provides the attached Decommissioning Funding Assurance Status Report for the Maine Yankee ISFSI to comply with 10 CFR 50.75(f)(l) and (2) and 10 CFR 50.82(a)(8)(v) and (vi).
In Attachment 1, Maine Yankee provides the attached Decommissioning Funding Assurance Status Report for the Maine Yankee ISFSI to comply with 10 CFR 50.75(f)(l) and (2) and 10 CFR 50.82(a)(8)(v) and (vi).
This letter contains no regulatory commitments.
This letter contains no regulatory commitments.  


I Maine Yankee Atomic Power Company OMY-18-007\March 5, 2018\Page 2 If you have any questions regarding this letter, please do not hesitate to contact me at (860) 267-6426 x304.
I Maine Yankee Atomic Power Company OMY-18-007\\March 5, 2018\\Page 2 If you have any questions regarding this letter, please do not hesitate to contact me at (860) 267-6426 x304.
Respectfully,
Respectfully,  
  ~~
~~
Carla M. Pizzella Vice President, Chief Financial Officer, and Treasurer
Carla M. Pizzella Vice President, Chief Financial Officer, and Treasurer  


==Attachment:==
==Attachment:==
: 1. Decommissioning Funding Status Report for the Maine Yankee Independent Spent Fuel Storage Installation (Status as of 12/31/2017)
: 1. Decommissioning Funding Status Report for the Maine Yankee Independent Spent Fuel Storage Installation (Status as of 12/31/2017)  


==References:==
==References:==
: 1. Maine Yankee letter to USNRC, "Certifications of Permanent Cessation of Power Operation and Permanent Removal of Fuel from the Reactor," dated August 7, 1997
: 1. Maine Yankee letter to USNRC, "Certifications of Permanent Cessation of Power Operation and Permanent Removal of Fuel from the Reactor," dated August 7, 1997
: 2. USNRC letter to Maine Yankee, "Issuance of Amendment No. 172, To Facility Operating License No. DPR-36-Maine Yankee Atomic Power Station (TAC No. M8000)," dated September 30, 2005 cc:     D. Lew, NRC Region I Administrator R. Powell, Chief, Decommissioning Branch, NRC, Region 1 J. Nguyen, NRC Project Manager P. Dostie, State ofMaine, Nuclear Safety Inspector J. Hyland, State of Maine, Manager Radiation Control Program
: 2. USNRC letter to Maine Yankee, "Issuance of Amendment No. 172, To Facility Operating License No. DPR-36-Maine Yankee Atomic Power Station (TAC No. M8000)," dated September 30, 2005 cc:
D. Lew, NRC Region I Administrator R. Powell, Chief, Decommissioning Branch, NRC, Region 1 J. Nguyen, NRC Project Manager P. Dostie, State ofMaine, Nuclear Safety Inspector J. Hyland, State of Maine, Manager Radiation Control Program  


ATTACHMENT 1 TO OMY-18-007 DECOMMISSIONING FUNDING STATUS REPORT FOR THE MAINEYANKEE INDEPENDENT SPENT FUEL STORAGE INSTALLATION (STATUS AS OF 12/31/2017)
ATTACHMENT 1 TO OMY-18-007 DECOMMISSIONING FUNDING STATUS REPORT FOR THE MAINEY ANKEE INDEPENDENT SPENT FUEL STORAGE INSTALLATION (STATUS AS OF 12/31/2017)  


Attachment 1 to OMY-18-007 Decommissioning Funding Status Report for the Maine Yankee Independent Spent Fuel Storage Installation (Status as of 12/31/2017) 10 CFR Requirement              Response                                             Comment 10 CFR 50.75(f)(l) and (2) Requirements
10 CFR Requirement to OMY-18-007 Decommissioning Funding Status Report for the Maine Yankee Independent Spent Fuel Storage Installation (Status as of 12/31/2017)  
: 1. The amount of decommissioning     -$22.6 million 10 CFR 50.75 provides the calculation basis for determining minimum amounts of funds estimated to be required     (in 2017       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 1998, Maine Yankee Atomic Power Company (Maine Yankee) commenced decommissioning the power plant. On September 30, 2005, the NRC amended the Maine Yankee license, releasing most of the formerly licensed land for unrestricted use, shrinking the licensed land to only that associated with the Maine Yankee Independent Spent Fuel Storage Installation (ISFSI). Thus, the only decommissioning activities and decommissioning funding requirements that remain are those associated with the decommissioning of the Maine Yankee ISFSI, which is currently scheduled to occur after the Department of Energy (DOE) removes the irradiated fuel and Greater than Class C (GTCC) waste.
===Response===
Comment 10 CFR 50.75(f)(l) and (2) Requirements
: 1. The amount of decommissioning  
-$22.6 million 10 CFR 50.75 provides the calculation basis for determining minimum amounts of funds estimated to be required (in 2017 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 1998, Maine Yankee Atomic Power Company (Maine Yankee) commenced decommissioning the power plant. On September 30, 2005, the NRC amended the Maine Yankee license, releasing most of the formerly licensed land for unrestricted use, shrinking the licensed land to only that associated with the Maine Yankee Independent Spent Fuel Storage Installation (ISFSI). Thus, the only decommissioning activities and decommissioning funding requirements that remain are those associated with the decommissioning of the Maine Yankee ISFSI, which is currently scheduled to occur after the Department of Energy (DOE) removes the irradiated fuel and Greater than Class C (GTCC) waste.
On December 16, 2015, Maine Yankee provided a three-year update to the decommissioning funding plan for the Maine Yankee ISFSI in accordance with 10 CFR 72.30(c) that included a revised Decommissioning Cost Estimate (DCE) for.the Maine Yankee ISFSI.
On December 16, 2015, Maine Yankee provided a three-year update to the decommissioning funding plan for the Maine Yankee ISFSI in accordance with 10 CFR 72.30(c) that included a revised Decommissioning Cost Estimate (DCE) for.the Maine Yankee ISFSI.
: 2. The amount accumulated at the     -$38.4 million Maine Yankee has established an account within its Nuclear Decommissioning Trust end of the calendar year preceding (as of         (NDT) entitled "ISFSI Radiological Decom" that segregates the funds for radiological the date of the report for items   12/31/2017)     decommissioning of the ISFSI from the larger balance of funds for ongoing included in                                       management of irradiated fuel and GTCC waste held in the NDT. This market balance 10 CFR 50.75(e)(l)(i).                           only reflects the funds in the segregated account for radiological decommissioning the ISFSI.
: 2. The amount accumulated at the  
Page 1 of7
-$38.4 million Maine Yankee has established an account within its Nuclear Decommissioning Trust end of the calendar year preceding (as of (NDT) entitled "ISFSI Radiological Decom" that segregates the funds for radiological the date of the report for items 12/31/2017) decommissioning of the ISFSI from the larger balance of funds for ongoing included in management of irradiated fuel and GTCC waste held in the NDT. This market balance 10 CFR 50.75(e)(l)(i).
only reflects the funds in the segregated account for radiological decommissioning the ISFSI.
Page 1 of7
 
10 CFR Requirement
: 3. Schedule of the annual amounts remaining to be collected Including amounts beyond those required in 10 CFR 50.75(e)(l)(i).
# Years to collect
: 4. The assumptions used regarding escalation of the decommissioning cost estimate, rates of earnings on decommissioning funds, and rates of other factors used in funding projections are:
Annual escalation rate, Annual after-tax earnings rate on decommissioning trust funds, and Other factors assumed.
: 5. Any contracts upon which the licensee is relying pursuant to 10 CFR 50.75(e)(l)(ii)(A).
: 6. Any modifications to a licensee's current method of providing financial assurance occurring since the last submitted report.
/ to OMY-18-007 Decommissioning Funding Status Report for the Maine Yankee Independent Spent Fuel Storage Installation (Status as of 12/31/2017)
 
===Response===
Comment
$0 No additional comments.
NIA No additional comments.
2.5%
4.0%
None Yes Maine Yankee may collect funds through its power contracts and amendatory agreements under Federal Energy Regulatory Commission (FERC) regulation. The power contracts and the amendatory agreements specify the obligations of the purchasers for the costs of Maine Yankee, including decommissioning costs. Such contracts have been filed with FERC.
None No additional comments.
Page 2 of7  


                                                                                                            /
10 CFR Requirement
Attachment 1 to OMY-18-007 Decommissioning Funding Status Report for the Maine Yankee Independent Spent Fuel Storage Installation (Status as of 12/31/2017) 10 CFR Requirement                Response                                        Comment
: 7. Any material changes to trust agreements. to OMY-18-007 Decommissioning Funding Status Report for the Maine Yankee Independent Spent Fuel Storage Installation (Status as of 12/31/2017)  
: 3. Schedule of the annual amounts      $0          No additional comments.
remaining to be collected Including amounts beyond those required in 10 CFR 50.75(e)(l)(i).
  # Years to collect                  NIA
: 4. The assumptions used regarding                  No additional comments.
escalation of the decommissioning cost estimate, rates of earnings on decommissioning funds, and rates of other factors used in funding projections are:
Annual escalation rate,            2.5%
Annual after-tax earnings rate on  4.0%
decommissioning trust funds, and Other factors assumed.              None
: 5. Any contracts upon which the        Yes          Maine Yankee may collect funds through its power contracts and amendatory licensee is relying pursuant to                  agreements under Federal Energy Regulatory Commission (FERC) regulation. The 10 CFR 50.75(e)(l)(ii)(A).                      power contracts and the amendatory agreements specify the obligations of the purchasers for the costs of Maine Yankee, 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.
Page 2 of7


Attachment 1 to OMY-18-007 Decommissioning Funding Status Report for the Maine Yankee Independent Spent Fuel Storage Installation (Status as of 12/31/2017) 10 CFR Requirement              Response                                           Comment
===Response===
: 7. Any material changes to trust      None           No additional comments.
Comment None No additional comments.
agreements.
10 CFR 50.82(a)(8)(v) (A) through (D) Requirements
10 CFR 50.82(a)(8)(v) (A) through (D) Requirements
: 1. The amount spent on                               In 1998, Maine Yankee commenced decommissioning the power plant. On decommissioning, both:                           September 30, 2005, the NRC amended the Maine Yankee license, releasing most of the formerly licensed land for unrestricted use, shrinking the licensed land to the ISFSI cumulative                                       only. The only decommissioning activities that remain are those associated with the
: 1. The amount spent on In 1998, Maine Yankee commenced decommissioning the power plant. On decommissioning, both:
                                      $0 (Refer to Comment)       decommissioning of the Maine Yankee ISFSI, which is currently scheduled to occur and                                             after the DOE removes the irradiated fuel and GTCC waste.
September 30, 2005, the NRC amended the Maine Yankee license, releasing most of the formerly licensed land for unrestricted use, shrinking the licensed land to the ISFSI cumulative  
over the previous calendar year. $0 10 CFR 50.82(a)(8)(v) became effective on December 17, 2012. At that time, the only areas that were within the control of Operating License No. DPR-36 were those associated with the Maine Yankee ISFSI. Thus, Maine Yankee is only presenting the information associated with the decommissioning of the areas that remain within the control of Operating License No. DPR-36.
$0 (Refer to only. The only decommissioning activities that remain are those associated with the Comment) decommissioning of the Maine Yankee ISFSI, which is currently scheduled to occur and after the DOE removes 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 only areas that were within the control of Operating License No. DPR-36 were those associated with the Maine Yankee ISFSI. Thus, Maine Yankee is only presenting the information associated with the decommissioning of the areas that remain within the control of Operating License No. DPR-36.
Presently, Maine Yankee is storing irradiated fuel and GTCC waste on site until it is removed by the DOE. Decommissioning of the Maine Yankee ISFSI is currently scheduled to be completed in calendar year 2035 after the DOE removes the irradiated fuel and GTCC waste. Thus, the cumulative cost spent on decommissioning the Maine Yankee ISFSI is $0, and the amount spent in calendar year 2017 is $0.
Presently, Maine Yankee is storing irradiated fuel and GTCC waste on site until it is removed by the DOE. Decommissioning of the Maine Yankee ISFSI is currently scheduled to be completed in calendar year 2035 after the DOE removes the irradiated fuel and GTCC waste. Thus, the cumulative cost spent on decommissioning the Maine Yankee ISFSI is $0, and the amount spent in calendar year 2017 is $0.
: 2. The remaining balance of any       $38.4 million Maine Yankee has established an account within its NDT entitled "ISFSI Radiological decommissioning funds.           (as of         Decom" that segregates the funds for radiological decommissioning of the ISFSI from 12/31/2017)   the larger balance of funds for ongoing management of irradiated fuel and GTCC waste held in the NDT. This market balance only reflects the funds in the segregated account for radiological decommissioning of the ISFSI.
: 2. The remaining balance of any  
Page 3 of7
$38.4 million Maine Yankee has established an account within its NDT entitled "ISFSI Radiological decommissioning funds.
(as of Decom" that segregates the funds for radiological decommissioning of the ISFSI from 12/31/2017) the larger balance of funds for ongoing management of irradiated fuel and GTCC waste held in the NDT. This market balance only reflects the funds in the segregated account for radiological decommissioning of the ISFSI.
Page 3 of7  


Attachment 1 to OMY-18-007 Decommissioning Funding Status Report for the Maine Yankee Independent Spent Fuel Storage Installation (Status as of 12/31/2017) 10 CFR Requirement              Response                                             Comment
10 CFR Requirement
: 3. The amount provided by other      $0           As of December 31, 2017, Maine Yankee's NDT account entitled "ISFSI Radiological financial assurance methods being                becom" has a balance more than sufficient to cover the estimated cost of the remaining relied upon.                                    radiological decommissioning of the ISFSI. However, if in the future, the balance in the account is not 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.
: 3. The amount provided by other financial assurance methods being relied upon. to OMY-18-007 Decommissioning Funding Status Report for the Maine Yankee Independent Spent Fuel Storage Installation (Status as of 12/31/2017)  
 
===Response===
Comment  
$0 As of December 31, 2017, Maine Yankee's NDT account entitled "ISFSI Radiological becom" has a balance more than sufficient to cover the estimated cost of the remaining radiological decommissioning of the ISFSI. However, if in the future, the balance in the account is not 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, Maine Yankee 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 Maine Yankee, including decommissioning. Pursuant to these power contracts, Maine Yankee has the ongoing ability to seek collections from its purchasers for additional funds that may be required to cover these costs.
First, Maine Yankee 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 Maine Yankee, including decommissioning. Pursuant to these power contracts, Maine Yankee has the ongoing ability to seek collections from its purchasers for additional funds that may be required to cover these costs.
Second, Maine Yankee has received proceeds from the successful litigation of the first three 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.
Second, Maine Yankee has received proceeds from the successful litigation of the first three 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.
Maine Yankee 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. To that end, in 2017, the Company filed a fourth round of claims (the Phase IV case) against the DOE seeking damages for the years 2013 - 2016. The Company cannot predict the timing or the amount it may ultimately be awarded.
Maine Yankee 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. To that end, in 2017, the Company filed a fourth round of claims (the Phase IV case) against the DOE seeking damages for the years 2013 - 2016. The Company cannot predict the timing or the amount it may ultimately be awarded.
A Maine Yankee FERC filing approved in June, 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 has the ability to apply to FERC for more funding, if necessary.
A Maine Yankee FERC filing approved in June, 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 has the ability to apply to FERC for more funding, if necessary.
The approved FERC filing also requires Maine Yankee to provide an informational filing regarding the adequacy of funding if five years pass without receipt of damage Page 4 of7
The approved FERC filing also requires Maine Yankee to provide an informational filing regarding the adequacy of funding if five years pass without receipt of damage Page 4 of7  


Attachment 1 to OMY-18-007                                                                ,
10 CFR Requirement
Decommissioning Funding Status Report for the Maine Yankee Independent Spent Fuel Storage Installation (Status as of 12/31/2017) 10 CFR Requirement               Response                                              Comment awards from litigation with the DOE.
: 4. An estimate of the costs to complete decommissioning, reflecting any difference between actual and estimated costs for work performed during the year.
Third, Maine Yankee 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%.
: 5. The decommissioning criteria upon which the estimate is based.
: 4. An estimate of the costs to       -$22.6 million  On December 16, 2015, Maine Yankee provided a three-year update to the complete decommissioning,         (in 2017        decommissioning funding plan for the Maine Yankee ISFSI in accordance with 10 CFR reflecting any difference between dollars)        72.30(c) that included a revised DCB for the Maine Yankee ISFSI.
: 6. Any modifications occurring to a licensee's current method of providing financial assurance since the last submitted report.
actual and estimated costs for work performed during the year.
: 7. Any material changes to trust agreements or financial assurance contracts. to OMY-18-007 Decommissioning Funding Status Report for the Maine Yankee Independent Spent Fuel Storage Installation (Status as of 12/31/2017)
: 5. The decommissioning criteria       10 CFR          The assumptions regarding the decommissioning cost estimate are provided in the upon which the estimate is based. 20.1402        revised DCB for ~he Maine Yankee ISFSI provided on December 16, 2015.
: 6. Any modifications occurring to a   None            No additional comment.
licensee's current method of providing financial assurance since the last submitted report.
: 7. Any material changes to trust     None            No additional comment.
agreements or financial assurance contracts.
Page 5 of 7


Attachment 1 to OMY-18-007                                                                  r Decommissioning Funding Status Report for the Maine Yankee Independent Spent Fuel Storage Installation (Status as of 12/31/2017) 10 CFR Requirement               Response                                            Comment 10 CFR 50.82(a)(8)(vi) Requirement
===Response===
: 1. Additional financial assurance       None         As of December 31, 2017, Maine Yankee's NDT account entitled "ISFSI Radiological required to cover the estimate cost              Decom" has a balance more than sufficient to cover the estimated cost of the remaining of completion.                                  radiological decommissioning of the ISFSI. However, if in the future, the balance in the account is not 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.
Comment awards from litigation with the DOE.
Third, Maine Yankee 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%.
-$22.6 million On December 16, 2015, Maine Yankee provided a three-year update to the (in 2017 decommissioning funding plan for the Maine Yankee ISFSI in accordance with 10 CFR dollars) 72.30(c) that included a revised DCB for the Maine Yankee ISFSI.
10 CFR The assumptions regarding the decommissioning cost estimate are provided in the 20.1402 revised DCB for ~he Maine Yankee ISFSI provided on December 16, 2015.
None No additional comment.
None No additional comment.
Page 5 of 7
 
10 CFR Requirement 10 CFR 50.82(a)(8)(vi) Requirement
: 1. Additional financial assurance required to cover the estimate cost of completion. to OMY-18-007 Decommissioning Funding Status Report for the Maine Yankee Independent Spent Fuel Storage Installation (Status as of 12/31/2017)
 
===Response===
Comment None As of December 31, 2017, Maine Yankee's NDT account entitled "ISFSI Radiological Decom" has a balance more than sufficient to cover the estimated cost of the remaining radiological decommissioning of the ISFSI. However, if in the future, the balance in the account is not 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, Maine Yankee 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 Maine Yankee, including decommissioning. Pursuant to these power contracts, Maine Yankee has the ongoing ability to seek collections from its purchasers for additional funds that may be required to cover these costs.
First, Maine Yankee 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 Maine Yankee, including decommissioning. Pursuant to these power contracts, Maine Yankee has the ongoing ability to seek collections from its purchasers for additional funds that may be required to cover these costs.
Second, Maine Yankee has received proceeds from the successful litigation of the first three 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.
Second, Maine Yankee has received proceeds from the successful litigation of the first three 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.
Maine Yankee 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. To that end, in 2017, the Company filed a fourth round of claims (the Phase IV case) against the DOE seeking damages for the years 2013 - 2016. The Company cannot predict the timing or the amount it may ultimately be awarded.
Maine Yankee 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. To that end, in 2017, the Company filed a fourth round of claims (the Phase IV case) against the DOE seeking damages for the years 2013 - 2016. The Company cannot predict the timing or the amount it may ultimately be awarded.
A Maine Yankee FERC filing approved in June, 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 has the ability to apply to FERC for more funding, if necessary.
A Maine Yankee FERC filing approved in June, 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 has the ability to apply to FERC for more funding, if necessary.
The approved FERC filing also requires Maine Yankee to provide an informational Page 6 of 7
The approved FERC filing also requires Maine Yankee to provide an informational Page 6 of 7 r
 
10 CFR Requirement to OMY-18-007 Decommissioning Funding Status Report for the Maine Yankee Independent Spent Fuel Storage Installation (Status as of 12/31/2017)


Attachment 1 to OMY-18-007 Decommissioning Funding Status Report for the Maine Yankee Independent Spent Fuel Storage Installation (Status as of 12/31/2017) 10 CFR Requirement    Response                                           Comment filing regarding the adequacy of funding if five years pass without receipt of damage awards from litigation with the DOE.
===Response===
Comment filing regarding the adequacy of funding if five years pass without receipt of damage awards from litigation with the DOE.
Third, Maine Yankee 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%.
Third, Maine Yankee 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%.
Page 7 of7}}
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Latest revision as of 05:45, 6 January 2025

Independent Spent Fuel Storage Installation - Decommissioning Funding Assurance Status Report
ML18082A097
Person / Time
Site: Maine Yankee
Issue date: 03/05/2018
From: Pizzella C
Maine Yankee Atomic Power Co
To:
Document Control Desk, Office of Nuclear Material Safety and Safeguards
References
OMY-18-007
Download: ML18082A097 (10)
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MAINE YANKEE 321 Old Ferry Road, Wiscasset, Maine 04578 ATTN: Document Control Desk U.S. Nuclear Regulatory Commission Washington, DC 20555 - 0001 March 5, 2018 OMY-18-007 10 CFR50.4 10 CFR 50.75(t)(l) and (2) 10 CFR 50.82(a)(8)(v) and (vi)

Maine Yankee Atomic Power Company Maine Yankee Independent Spent Fuel Storage Installation NRC License No. DPR-36 (NRC Docket No. 50-309)

Subject:

Decommissioning Funding Assurance Status Report On August 7, 1997, Maine Yankee Atomic Power Company (Maine Yankee) informed the USNRC that the Board of Directors of Maine Yankee had decided to permanently cease operations at the Maine Yankee 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 Maine Yankee license to permanently withdraw Maine Yankee's authority to operate the reactor. In 1998, Maine Yankee commenced decommissioning the power plant. On September 30, 2005, the NRC amended the Maine Yankee license, releasing most of the formerly licensed land for unrestricted use, shrinking the licensed land to the Independent Spent Fuel Storage Installation (ISFSI) only (Reference 2). The only decommissioning activities that remain are those associated with the decommissioning of the Maine Yankee ISFSI, which is currently scheduled to occur after the Department of Energy (DOE) removes the irradiated fuel and Greater than Class C (GTCC) waste.

In Attachment 1, Maine Yankee provides the attached Decommissioning Funding Assurance Status Report for the Maine Yankee ISFSI to comply with 10 CFR 50.75(f)(l) and (2) and 10 CFR 50.82(a)(8)(v) and (vi).

This letter contains no regulatory commitments.

I Maine Yankee Atomic Power Company OMY-18-007\\March 5, 2018\\Page 2 If you have any questions regarding this letter, please do not hesitate to contact me at (860) 267-6426 x304.

Respectfully,

~~

Carla M. Pizzella Vice President, Chief Financial Officer, and Treasurer

Attachment:

1. Decommissioning Funding Status Report for the Maine Yankee Independent Spent Fuel Storage Installation (Status as of 12/31/2017)

References:

1. Maine Yankee letter to USNRC, "Certifications of Permanent Cessation of Power Operation and Permanent Removal of Fuel from the Reactor," dated August 7, 1997
2. USNRC letter to Maine Yankee, "Issuance of Amendment No. 172, To Facility Operating License No. DPR-36-Maine Yankee Atomic Power Station (TAC No. M8000)," dated September 30, 2005 cc:

D. Lew, NRC Region I Administrator R. Powell, Chief, Decommissioning Branch, NRC, Region 1 J. Nguyen, NRC Project Manager P. Dostie, State ofMaine, Nuclear Safety Inspector J. Hyland, State of Maine, Manager Radiation Control Program

ATTACHMENT 1 TO OMY-18-007 DECOMMISSIONING FUNDING STATUS REPORT FOR THE MAINEY ANKEE INDEPENDENT SPENT FUEL STORAGE INSTALLATION (STATUS AS OF 12/31/2017)

10 CFR Requirement to OMY-18-007 Decommissioning Funding Status Report for the Maine Yankee Independent Spent Fuel Storage Installation (Status as of 12/31/2017)

Response

Comment 10 CFR 50.75(f)(l) and (2) Requirements

1. The amount of decommissioning

-$22.6 million 10 CFR 50.75 provides the calculation basis for determining minimum amounts of funds estimated to be required (in 2017 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 1998, Maine Yankee Atomic Power Company (Maine Yankee) commenced decommissioning the power plant. On September 30, 2005, the NRC amended the Maine Yankee license, releasing most of the formerly licensed land for unrestricted use, shrinking the licensed land to only that associated with the Maine Yankee Independent Spent Fuel Storage Installation (ISFSI). Thus, the only decommissioning activities and decommissioning funding requirements that remain are those associated with the decommissioning of the Maine Yankee ISFSI, which is currently scheduled to occur after the Department of Energy (DOE) removes the irradiated fuel and Greater than Class C (GTCC) waste.

On December 16, 2015, Maine Yankee provided a three-year update to the decommissioning funding plan for the Maine Yankee ISFSI in accordance with 10 CFR 72.30(c) that included a revised Decommissioning Cost Estimate (DCE) for.the Maine Yankee ISFSI.

2. The amount accumulated at the

-$38.4 million Maine Yankee has established an account within its Nuclear Decommissioning Trust end of the calendar year preceding (as of (NDT) entitled "ISFSI Radiological Decom" that segregates the funds for radiological the date of the report for items 12/31/2017) decommissioning of the ISFSI from the larger balance of funds for ongoing included in management of irradiated fuel and GTCC waste held in the NDT. This market balance 10 CFR 50.75(e)(l)(i).

only reflects the funds in the segregated account for radiological decommissioning the ISFSI.

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10 CFR Requirement

3. Schedule of the annual amounts remaining to be collected Including amounts beyond those required in 10 CFR 50.75(e)(l)(i).
  1. Years to collect
4. The assumptions used regarding escalation of the decommissioning cost estimate, rates of earnings on decommissioning funds, and rates of other factors used in funding projections are:

Annual escalation rate, Annual after-tax earnings rate on decommissioning trust funds, and Other factors assumed.

5. Any contracts upon which the licensee is relying pursuant to 10 CFR 50.75(e)(l)(ii)(A).
6. Any modifications to a licensee's current method of providing financial assurance occurring since the last submitted report.

/ to OMY-18-007 Decommissioning Funding Status Report for the Maine Yankee Independent Spent Fuel Storage Installation (Status as of 12/31/2017)

Response

Comment

$0 No additional comments.

NIA No additional comments.

2.5%

4.0%

None Yes Maine Yankee may collect funds through its power contracts and amendatory agreements under Federal Energy Regulatory Commission (FERC) regulation. The power contracts and the amendatory agreements specify the obligations of the purchasers for the costs of Maine Yankee, including decommissioning costs. Such contracts have been filed with FERC.

None No additional comments.

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10 CFR Requirement

7. Any material changes to trust agreements. to OMY-18-007 Decommissioning Funding Status Report for the Maine Yankee Independent Spent Fuel Storage Installation (Status as of 12/31/2017)

Response

Comment None No additional comments.

10 CFR 50.82(a)(8)(v) (A) through (D) Requirements

1. The amount spent on In 1998, Maine Yankee commenced decommissioning the power plant. On decommissioning, both:

September 30, 2005, the NRC amended the Maine Yankee license, releasing most of the formerly licensed land for unrestricted use, shrinking the licensed land to the ISFSI cumulative

$0 (Refer to only. The only decommissioning activities that remain are those associated with the Comment) decommissioning of the Maine Yankee ISFSI, which is currently scheduled to occur and after the DOE removes 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 only areas that were within the control of Operating License No. DPR-36 were those associated with the Maine Yankee ISFSI. Thus, Maine Yankee is only presenting the information associated with the decommissioning of the areas that remain within the control of Operating License No. DPR-36.

Presently, Maine Yankee is storing irradiated fuel and GTCC waste on site until it is removed by the DOE. Decommissioning of the Maine Yankee ISFSI is currently scheduled to be completed in calendar year 2035 after the DOE removes the irradiated fuel and GTCC waste. Thus, the cumulative cost spent on decommissioning the Maine Yankee ISFSI is $0, and the amount spent in calendar year 2017 is $0.

2. The remaining balance of any

$38.4 million Maine Yankee has established an account within its NDT entitled "ISFSI Radiological decommissioning funds.

(as of Decom" that segregates the funds for radiological decommissioning of the ISFSI from 12/31/2017) the larger balance of funds for ongoing management of irradiated fuel and GTCC waste held in the NDT. This market balance only reflects the funds in the segregated account for radiological decommissioning of the ISFSI.

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10 CFR Requirement

3. The amount provided by other financial assurance methods being relied upon. to OMY-18-007 Decommissioning Funding Status Report for the Maine Yankee Independent Spent Fuel Storage Installation (Status as of 12/31/2017)

Response

Comment

$0 As of December 31, 2017, Maine Yankee's NDT account entitled "ISFSI Radiological becom" has a balance more than sufficient to cover the estimated cost of the remaining radiological decommissioning of the ISFSI. However, if in the future, the balance in the account is not 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, Maine Yankee 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 Maine Yankee, including decommissioning. Pursuant to these power contracts, Maine Yankee has the ongoing ability to seek collections from its purchasers for additional funds that may be required to cover these costs.

Second, Maine Yankee has received proceeds from the successful litigation of the first three 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.

Maine Yankee 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. To that end, in 2017, the Company filed a fourth round of claims (the Phase IV case) against the DOE seeking damages for the years 2013 - 2016. The Company cannot predict the timing or the amount it may ultimately be awarded.

A Maine Yankee FERC filing approved in June, 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 has the ability to apply to FERC for more funding, if necessary.

The approved FERC filing also requires Maine Yankee to provide an informational filing regarding the adequacy of funding if five years pass without receipt of damage Page 4 of7

10 CFR Requirement

4. An estimate of the costs to complete decommissioning, reflecting any difference between actual and estimated costs for work performed during the year.
5. The decommissioning criteria upon which the estimate is based.
6. Any modifications occurring to a licensee's current method of providing financial assurance since the last submitted report.
7. Any material changes to trust agreements or financial assurance contracts. to OMY-18-007 Decommissioning Funding Status Report for the Maine Yankee Independent Spent Fuel Storage Installation (Status as of 12/31/2017)

Response

Comment awards from litigation with the DOE.

Third, Maine Yankee 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%.

-$22.6 million On December 16, 2015, Maine Yankee provided a three-year update to the (in 2017 decommissioning funding plan for the Maine Yankee ISFSI in accordance with 10 CFR dollars) 72.30(c) that included a revised DCB for the Maine Yankee ISFSI.

10 CFR The assumptions regarding the decommissioning cost estimate are provided in the 20.1402 revised DCB for ~he Maine Yankee ISFSI provided on December 16, 2015.

None No additional comment.

None No additional comment.

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10 CFR Requirement 10 CFR 50.82(a)(8)(vi) Requirement

1. Additional financial assurance required to cover the estimate cost of completion. to OMY-18-007 Decommissioning Funding Status Report for the Maine Yankee Independent Spent Fuel Storage Installation (Status as of 12/31/2017)

Response

Comment None As of December 31, 2017, Maine Yankee's NDT account entitled "ISFSI Radiological Decom" has a balance more than sufficient to cover the estimated cost of the remaining radiological decommissioning of the ISFSI. However, if in the future, the balance in the account is not 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, Maine Yankee 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 Maine Yankee, including decommissioning. Pursuant to these power contracts, Maine Yankee has the ongoing ability to seek collections from its purchasers for additional funds that may be required to cover these costs.

Second, Maine Yankee has received proceeds from the successful litigation of the first three 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.

Maine Yankee 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. To that end, in 2017, the Company filed a fourth round of claims (the Phase IV case) against the DOE seeking damages for the years 2013 - 2016. The Company cannot predict the timing or the amount it may ultimately be awarded.

A Maine Yankee FERC filing approved in June, 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 has the ability to apply to FERC for more funding, if necessary.

The approved FERC filing also requires Maine Yankee to provide an informational Page 6 of 7 r

10 CFR Requirement to OMY-18-007 Decommissioning Funding Status Report for the Maine Yankee Independent Spent Fuel Storage Installation (Status as of 12/31/2017)

Response

Comment filing regarding the adequacy of funding if five years pass without receipt of damage awards from litigation with the DOE.

Third, Maine Yankee 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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