Xcel Energy 2010 Annual Report Download - page 24

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In 2010, the DOE announced its intention to stop the Yucca Mountain project and requested the NRC to approve the withdrawal
of the application. A number of parties have challenged the DOE’s authority to stop the project and withdraw the application. The
utility industry, including Xcel Energy, is represented in the challenges by the NEI. In light of the DOE’s plan to stop the project
and withdraw its application, Xcel Energy in a separate action has requested the Secretary of Energy to set the fee collection rate
for the Nuclear Waste Fund to zero until a definitive program is in place. In April 2010, the NEI, on behalf of its members,
including Xcel Energy, filed a lawsuit against the DOE in federal court, requesting that the fee be suspended. In parallel with the
action to stop the Yucca Mountain project, the Secretary of Energy convened a Blue Ribbon Commission to recommend
alternatives to Yucca Mountain for disposing of used nuclear fuel. The final report containing recommendations from the Blue
Ribbon Commission is expected in early 2012.
In June 2010, the ASLB issued a ruling that the DOE could not withdraw the Yucca Mountain application. The NRC
Commissioners have made a decision to review the ASLB’s decision. A decision from the NRC Commissioners could come in
the first quarter 2011.
To date, the DOE has not accepted any of NSP-Minnesota’s spent nuclear fuel. NSP-Minnesota has interim on-site storage for
spent nuclear fuel at its Monticello and Prairie Island nuclear generating plants. As of Dec. 31, 2010, there were 29 casks loaded
and stored at the Prairie Island plant and 10 casks loaded and stored at the Monticello plant. See Item 3 and Note 14 to the
consolidated financial statements for further discussion of the legal proceedings against the DOE related to the nuclear waste
disposal matter.
PFS — NSP-Minnesota is part of a consortium of private parties working to establish a private facility for interim storage of
spent nuclear fuel. In 2005, NSP-Minnesota indicated that it would hold in abeyance future investments in the construction of PFS
as long as there is apparent and continuing progress in federally sponsored initiatives for storage, reuse, and/or disposal for the
nation’s spent nuclear fuel. In 2006, the Department of the Interior issued two findings: (1) that it would not grant the leases for
rail or intermodal sites and (2) that it was revoking its previous conditional approval of the site lease between PFS and the Skull
Valley Indian tribe. In 2007, PFS and the Skull Valley Band filed a lawsuit challenging these actions. The lawsuit remains
pending. A judicial appeal of the NRC licensing decision has been held in abeyance pending the outcome of the lawsuit
challenging the Department of the Interior decisions. The existence of PFS as a licensed out-of-state storage option remains a
credible alternative if PFS and the Skull Valley Band can prevail in the pending litigation and if the federal government fails to
make progress with their obligation to take title and remove spent nuclear fuel from all domestic reactor sites.
Nuclear Plant Power Uprates and Life Extension
Monticello Life Extension — In 2006, the NRC renewed Monticello’s operating license 20 years or until 2030.
Prairie Island Life Extension — In 2008, NSP-Minnesota filed an application with the NRC to renew the operating license of its
two nuclear reactors at Prairie Island for an additional 20 years, until 2033 and 2034, respectively. The NRC staff is proceeding
with the items necessary to process Prairie Island’s license renewal application and NSP-Minnesota anticipates receiving a final
decision on the Prairie Island license renewal in the second quarter of 2011.
Monticello Nuclear Extended Power Uprate — In 2008, NSP-Minnesota filed for an extended power uprate of approximately 71
MW for NSP-Minnesota’s Monticello facility. The MPUC approved the extended power uprate in 2008. The filing was placed on
hold by the NRC staff to address concerns raised by the ACRS related to containment pressure associated with pump
performance. The industry submitted a white paper and the NRC staff recommended that the matter be addressed through specific
filings to demonstrate any potential risk and mitigation measures. In a letter to the NRC staff, the ACRS indicated that
modifications to the plant should be evaluated and made where practical. NSP-Minnesota is working with the NRC to determine
whether an additional supplement to its filing will be necessary to address the issues and expects to complete the license
proceeding in 2011.
Prairie Island Nuclear Extended Power Uprate — In 2008, NSP-Minnesota filed for an extended power uprate of approximately
164 MW for NSP-Minnesota’s Prairie Island Units 1 and 2. The MPUC approved the extended power uprate in 2009. NSP-
Minnesota cannot file for NRC approval of the extended power uprate until after the NRC renews the plants’ current operating
licenses. A decision is expected in 2011. The extended power uprates are scheduled to be implemented during the 2014 and 2015
refueling outages.