ML080920368

And Prairie Island Nuclear Generating Plant, Units 1 and 2 - Indemnity Agreements (TAC Nos. MD8060, MD8061 and MD8062

ML080920368
Person / Time
Site:	Monticello, Prairie Island
Issue date:	04/03/2008
From:	Mahesh Chawla NRC/NRR/ADRO/DORL/LPLIII-1
To:	Koehl D Nuclear Management Co
Chawla M, NRR/DORL, 415-8371
References
TAC MD8060, TAC MD8061, TAC MD8062
Download: ML080920368 (5)

Text

April 3, 2008 Mr. Dennis Koehl Senior VP and Chief Nuclear Officer Nuclear Management Company, LLC 700 First Street Hudson, WI 54016

SUBJECT:

MONTICELLO NUCLEAR GENERATING PLANT AND PRAIRIE ISLAND NUCLEAR GENERATING PLANT, UNIT 1 AND 2 - INDEMNITY AGREEMENTS (TAC NOS. MD8060, MD8061 AND MD8062)

Dear Mr. Koehl:

On February 28, 2008, a public meeting was held between the U.S. Nuclear Regulatory Commission (NRC), and representatives of Nuclear Management Company, LLC (NMC), to discuss the proposed license transfer from Nuclear Management Company, LLC (NMC) to Northern States Power Company, a Minnesota Corporation (NSPM). The meeting summary was issued on March 21, 2008 (Agencywide Documents and Management System (ADAMS)

Accession No. ML080650824).

As a follow up to this meeting, teleconferences were held between your staff and the NRC staff to discuss retrieval of the original Indemnity Agreements for Monticello Nuclear Generating Plant (MNGP) and Prairie Island Nuclear Generating Plant (PINGP), Unit 1 and 2. The NRC staffs search of the Official Agency Records indicated that amendment 10 for PINGP, Unit 1 and 2 and amendment 12 for MNGP were missing. Since the Indemnity Agreements can not be recreated due to the missing amendments, a general consensus was reached that NRC staff would provide validation of the original Indemnity Agreements for MNGP and PINGP, Unit 1 and 2.

The NRC staff has reviewed the Indemnity status for both sites and provided the following evaluation.

Northern States Power Company is in full compliance with Section 170 of the Atomic Energy Act, of 1954, as amended ( the Price-Anderson Act) and 10 CFR 140 and 10 CFR 50.54(w)(3) by purchasing from American Nuclear Insurers (ANI) the maximum amount of primary nuclear liability insurance, i.e. $300 million, by purchasing the secondary retrospective premium insurance policy and by purchasing what it considers to be a reasonable amount of nuclear property insurance above the minimum amount of $1.06 billion that is required in accordance with our regulations as referenced above. Northern States Power Company has also provided us with a copy of a Bond for the Payment of Retrospective Premiums executed with ANI which conforms with our requirements as stated in 10 CFR 140.21.

The next amendments to MNGP and PINGP indemnity agreements will reflect that Northern States Power Company will become the sole licensee and will delete Nuclear Management Company, LLC as a licensee.

We hope that this resolves the indemnity issues and provides you the necessary information in order to process the subject license transfer applications. If you have any questions, please do not hesitate to contact me @ mlc@nrc.gov or call me at 301-415-8371.

Sincerely,

/RA/

Mahesh L. Chawla, Project Manager Plant Licensing Branch III-1 Division of Operating Reactor Licensing Office of Nuclear Reactor Regulation Docket Nos. 50-263, 50-282, 50-306, and 72-10 cc: See next page

Monticello Nuclear Generating Plant cc:

Peter M. Glass Assistant General Counsel Xcel Energy Services, Inc.

414 Nicollet Mall Minneapolis, MN 55401 U.S. Nuclear Regulatory Commission Resident Inspector's Office 2807 W. County Road 75 Monticello, MN 55362 Manager, Nuclear Safety Assessment Monticello Nuclear Generating Plant Nuclear Management Company, LLC 2807 West County Road 75 Monticello, MN 55362-9637 Commissioner Minnesota Pollution Control Agency 520 Lafayette Road St. Paul, MN 55155-4194 Commissioner Minnesota Department of Health 717 Delaware Street, S. E.

Minneapolis, MN 55440 Douglas M. Gruber, Auditor/Treasurer Wright County Government Center 10 NW Second Street Buffalo, MN 55313 Commissioner Minnesota Department of Commerce 85 7th Place East, Suite 500 St. Paul, MN 55101-2198 Manager - Environmental Protection Division Minnesota Attorney General=s Office 445 Minnesota St., Suite 900 St. Paul, MN 55101-2127 Nuclear Asset Manager Xcel Energy, Inc.

414 Nicollet Mall, R.S. 8 Minneapolis, MN 55401 Dennis L. Koehl Chief Nuclear Officer Nuclear Management Company, LLC 700 First Street Hudson, WI 5401 December 2007

Prairie Island Nuclear Generating Plant, Units 1 and 2 cc:

Peter M. Glass Assistant General Counsel Xcel Energy Services, Inc.

414 Nicollet Mall Minneapolis, MN 55401 Manager, Regulatory Affairs Prairie Island Nuclear Generating Plant Nuclear Management Company, LLC 1717 Wakonade Drive East Welch, MN 55089 Manager - Environmental Protection Division Minnesota Attorney General=s Office 445 Minnesota St., Suite 900 St. Paul, MN 55101-2127 U.S. Nuclear Regulatory Commission Resident Inspector's Office 1719 Wakonade Drive East Welch, MN 55089-9642 Administrator Goodhue County Courthouse Box 408 Red Wing, MN 55066-0408 Commissioner Minnesota Department of Commerce 85 7th Place East, Suite 500 St. Paul, MN 55101-2198 Tribal Council Prairie Island Indian Community ATTN: Environmental Department 5636 Sturgeon Lake Road Welch, MN 55089 Nuclear Asset Manager Xcel Energy, Inc.

414 Nicollet Mall, R.S. 8 Minneapolis, MN 55401 Dennis L. Koehl Chief Nuclear Officer Nuclear Management Company, LLC 700 First Street Hudson, WI 54016 Joel P. Sorenson Director, Site Operations Prairie Island Nuclear Generating Plant Nuclear Management Company, LLC 1717 Wakonade Drive East Welch, MN 55089

ML080920368 OFFICE NRR/LPL3-1/PM NRR/LPL3-1/PM NRR/LPL3-1/LA NRR/PFPB/

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OGC NRR/LPL3-1/BC NAME MChawla:

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