ML20202D678

Ack Receipt of Re Deommissioning Funding Obligations of Great Bay Power Corp & Legislation Introduced to Complement Accelerated Decommissioning Funding Payment Schedule Recently Proposed by Great Bay Power Corp

ML20202D678
Person / Time
Site:	Seabrook
Issue date:	02/03/1998
From:	Shirley Ann Jackson, The Chairman NRC COMMISSION (OCM)
To:	Hollingworth B NEW HAMPSHIRE, STATE OF
References
NUDOCS 9802170146
Download: ML20202D678 (1)

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UNITED STATES X

NUCLEAR REGULATORY COMMISSION

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February 3,1998 CHAMAN 4

The Honorable Beverly A.' Hollingworth The Senate of the State of New Hampshire 107 N. Main Street, Room 302 Concord, New Hampshire 03301-4951

Dear Senator Hollingworth:

l Thank you for your letter dated December 18,1997, conceming the decommissioning funding obligations of Great Bay Power Corporation (Great Bay) and the bgislation you have introduced to complement the accelerated decommissioning funding payment schedule recently proposed by Great Bay.

As you may be aware, the Commission is proposing to aniend its regulat_ ions on financial assurance requirements for the decommissioning of nuclear power plants. (62 Fed.

Reg. 47,588 (1997).) Although we anticipate that this rulemaking will be completed prior to the expiration of Great Bay's exemption, it is not clear at this time whether Great Bay will be able to comply with any new rc suirements applicable to it. However, to the extent that your proposed legislation may augmen, funding assurance for the decommissioning of the Seabrook facility, it will certainly be considered in connection with any resolution of decommissioning funding assurance matters for Great Bay.

k Sincerely, ds Shirley Ann Jackson 9

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(8 The Senate of the State of New Hampshire 107 N. Main Street, Room 302, Concord, N.H. 03301-4951 BEVERLY A. HOLLINGWORTH ofnce 2712117 District 23 1 800 735 2964 i

December 18,1997 Shirley Ann Jackson, Chairman United States Nuclear Regulatory Commislon Washington, D.C. 20555-0001

Dear Chairman Jac'.cson:

I am writing with rcspect to effoits underway to find means of assuring that the decommissioning obligations of Great Bay Power Corporation, owner of 12.13240 percent of Seabrook Station, will be fulfilled.

As you may know, representatives of Great Bay Power Corporation met with Craig Smith, Seabrook Project Manager, and other members of the agency's staff on December 16* to broach the notion of accelerating their payments to the decommissioning fund in order to comply with the NRC's requirements. I understand the company intends to submit a formal filing to the NRC in January.

l I fully endorse accelerated funding which limits the risks to the decommissioning fund.

However, in light of the peculiar and unique commercial exigencies of Great Bay Power Corporation,I do not consider accelerated funding alone provides the assurance required by both the NRC and the State ofNew Hampshire.

Consequently, I have introduced legislation (a copy cf which is enclosed) to provide the necessary assurance in the form of a proportional guarantee of Great Bay Power Corporation's decommissioning obligation by the joint-owners of Seabrook Station. This legislation, I believe,is a necessary complement to the accelerated payrnent schedule proposed by the company.

As you are aware, the Final Policy Statement on the Restructuring and Economic Deregulation ofthe Electric Utility Industry, issued by the NRC on August 19,1997, anticipated that "i highly unusual situations"like that of Great Bay Power Corporation, n

owners of nuclear entitlements might be held jointly and severally liable for decommissioning obligations. I believe a proportional guarantee, though short ofjoint and several liability, provides sufficient assurance for the risk posed by Great Bay Power Corporation until the restructuring and deregulation of the electric power industry in New Hampshire is complete. gS/-2M7cy-;,-

c-The legislation is tailored and limited strictly to assuring the decommissioning obligation of Great Bay Power Corporation between the effective date of the statute and the restructuring of the electric power industry. Restructuring New Hampshire 's Electric Utility Industry: Final Plan, issued by the Public Utilities Commission on February 28, 1997, contemplates utilities will divest their generating assets within two years of

- initiating competition. Therefore, restructuring will require a mechanism for assuring decommissioning obligations in a deregulated and competitive marketplace.

The development of this mechanism is contingent upon and integral to resolution of other -

i aspects of restructuring the industry. Meanwhile, Great Bay Power Corporation presents an immediate problem open to a discrete solution, In addressing this specific problem, my legislation is not intended to serve as a precedent for the general assurance of decommissioning obligations required to complete the restructuring of the industry.

If successful, this legislation would be effective upon passage; that is, by July 1998 when l

the extension granted by the NRC to Great Bay Power Corporation expires. I trust the NRC will conclude that with this legislation no prpose would be served by a further extension which would simply prolong exposure to the risk of default, I would ask the NRC to consider this legislation as it addresses the case of Great Bay Power Corporation.

- Sincerely, Beverly Hollingworth -

BAH:mk enclosure cc: Craig Smith, NRR, Seabrook Project Manager

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Sea.' Hollingwaith, Diet 28 -

December 19,1997 '

.c 1998 0229s 08/01-s Amendment to SB 140 j

1 Amend the title of the bill by replaHr - it with the following:

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AN ACT relative to the obligu. 4s ofjoint owners.to the nuclear decommla= Wing finance fund.

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-5 Amend the bill by replacing all after the enacting clause with the following:

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7 1 Decommissioning of Nuclear Electric Generating Facilities; Guarantee of Payment; Default 8.

of Payment.

9-I.1 ne joint owners of a facility shall be proportional guarantors of the decommissioning 10 obligations of any joint owner of the facility which on the effective date of this section, does not have 11 = a hanchise territory..

12 II. The nuclear decommissioning financing committee shall designate the joint owners of a

=18' - facility as proportional guarantors of any joint owners of the facility that are unable to meet their 14 obligations as proportional guarantors of the decommissioning obligations of any joint owner of the 15 facility without a franchise territory.

16.

III.

If a - joint owner of a facility. without a franchise 1 territory defaults _ on its 17 5 decommissioning obligations, the committee shall require the remaining owners of the facility to 18 submit-for the committee's approval. a plan yfor the? fulfillment of the defaulting owne/s.

19_. _ decommissioning obligdtions. ' The plan shall be submitted within_30 days after the default..The 120 plan may include the sale of the defaulting owne/s share of the power generated by the facility, and 21-the application of the proceeds of such sale to the defaulting owne/s decommissioning obligations.

~ 22 For purposes of this section, " default" means the failure by an owner to make 2 consecutive

-28 payments to the fund required by RSA 162 F.

24 IV. If there is no plan submitted and approved pursuant to paragraph III, the committee H '261 may prepare and implement a plan for recovering ths decommissioning costs in defa ilt.

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- V. - Notwithstanding any other provision of law, a utility that is required to pay a 27 proportional share as guarantor pur'suant to this section may charge all or some of the amount to 28 customers on a per kilowatt hour basis only upon approval by the public utilities commission after a 29 finding that such a enarge is just and reasonable and in the public good.

~80 2 Repeal. - Section 1, relative to decommissioning < f nuclear electric generating facilities, is 31 repealed. -

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Amerdacnt to SB 140

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3 Contingency. Section 2 of this act shall take effect 80 days after the chairman of the public I

2 utilities commission lias cortified that retail electric competition exists in the entire state pursuant 3

to RSA 38:36.

4 4 Effective Date.

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1. Section 2 of this act shall take effect as provided in section 3, 6

II. The remainder of this act shall take effect upon passar e.

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Amendinent to SB 140

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1998-0229s AMENDED ANALYSIS his bill designates joint owners of a facility as guarantors of the decommissioning obligations of a joint owner without a franchise territory.

His bill also provides tha.

nuclear

-decommissioning fmance committee shall require a plan for the fulfi!1 ment of the decomtuissioning obligations of a joint owner of a facility without a franchise territory that defaults.

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