Xcel Energy 2012 Annual Report Download - page 21

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The DOE’s decision and the resulting stoppage of the NRC’s review has prompted multiple legal challenges, including the DOE’s
authority to stop the project and withdraw the application, the DOE’s authority to continue to collect the nuclear waste fund fee
and the NRC’s authority to stop their review of the DOE’s application. The utility industry, including Xcel Energy, Inc. and NSP-
Minnesota, are represented in these challenges by the NEI. Currently, only the challenges to set the nuclear waste fund fee
collection rate to zero and seeking the NRC to complete their review remain active and decisions are expected from the U.S.
Court of Appeals for the District of Columbia Circuit (D.C. Circuit) in 2013.
At the time that the DOE decided to stop the Yucca Mountain project and withdraw the application, the Secretary of Energy
convened a Blue Ribbon Commission to recommend alternatives to Yucca Mountain for disposal of used nuclear fuel. In January
2012, the Blue Ribbon Commission report was issued. The report provided numerous policy recommendations that are being
considered by the Secretary of Energy. In January 2013, the DOE provided its report to Congress relative to their plans to
implement the Blue Ribbon Commission’s recommendations including the required legislative changes and authorizations
required. The report also announced the Obama Administration's intent to make a pilot consolidated interim storage facility
available in 2021, a larger consolidated interim storage facility available in 2025 and a deep geologic repository available in 2048.
Nuclear Spent Fuel Storage
NSP-Minnesota has interim on-site storage for spent nuclear fuel at its Monticello and Prairie Island nuclear generating plants. As
of Dec. 31, 2012, there were 29 casks loaded and stored at the Prairie Island plant and 10 canisters loaded and stored at the
Monticello plant. An additional 35 casks for Prairie Island and 20 canisters for Monticello have been authorized by the State of
Minnesota. This currently authorized storage capacity is sufficient to allow NSP-Minnesota to operate until the end of the
renewed operating licenses in 2030 for Monticello, 2033 for Prairie Island Unit 1, and 2034 for Prairie Island Unit 2.
PFS — The eight partners of PFS, including NSP-Minnesota, have agreed to dissolve the LLC. PFS filed a letter with the NRC in
December 2012 requesting to terminate the PFS license effective immediately. PFS will be taking the appropriate actions to
dissolve the LLC in 2013.
NRC Waste Confidence Decision (WCD) — In June 2012, the D.C. Circuit issued a ruling to vacate and remand the NRC’s
WCD. The WCD assesses how long temporary on-site storage can remain safe and when facilities for the disposal of nuclear
waste will become available. The D.C. Circuit remanded the WCD to the NRC and directed it to prepare an environmental impact
statement (EIS) if there are significant impacts or an environmental assessment to support a finding of no significant impact. In
September 2012, the NRC Commissioners directed the NRC Staff to develop an EIS and a revised WCD and rule on the
temporary storage of spent nuclear fuel. The EIS and rule are to be completed within 24 months. NSP-Minnesota does not believe
that there will be an immediate impact on operations at the Prairie Island or Monticello nuclear generating plants.
See Notes 13 and 14 to the consolidated financial statements for further discussion regarding nuclear related items.
Nuclear Plant Power Uprates and Life Extension
Life Extensions — In 2006, the NRC renewed the Monticello operating license allowing the plant to operate until 2030. In 2011, the
NRC issued renewed operating licenses for Prairie Island Units 1 and 2, allowing Unit 1 to operate until 2033 and Unit 2 until 2034.
Prairie Island Independent Spent Fuel Storage Installation (ISFSI) License Renewal — The current license to operate an
ISFSI at Prairie Island expires in October 2013. An application to renew the ISFSI license for an additional 40 years until 2053
was submitted by NSP-Minnesota to the NRC in October 2011. In August 2012, the Prairie Island Indian Community (PIIC)
petitioned to intervene and filed contentions with the NRC. In September 2012, the NRC named an ASLB to review the PIIC’s
request to intervene and contentions. In December 2012, the ASLB found that the PIIC had standing to intervene and admitted
three of the seven contentions put forward by the PIIC. The ASLB will establish a schedule for the hearing which should be
completed by mid-2014. As Prairie Island met the NRC’s criteria for timely renewal by submitting its ISFSI license renewal
application more than two years in advance of the expiration of the ISFSI’s current license, it will be allowed to continue to
operate under the current license until the NRC has rendered a decision on the license renewal application.
Prairie Island Nuclear Plant EPU — In 2009, the MPUC granted NSP-Minnesota a CON for an EPU project at the Prairie
Island nuclear generating plant. The total estimated cost of the EPU was $294 million, of which approximately $77.6 million has
been incurred, including AFUDC of approximately $13.3 million. Subsequently, NSP-Minnesota filed a resource plan update and
a change of circumstances filing notifying the MPUC that there were changes in the size, timing and cost estimates for this
project, revisions to economic and project design analysis and changes due to the estimated impact of revised scheduled outages.
The information indicated reductions to the estimated benefit of the uprate project. As a result, NSP-Minnesota concluded that
further investment in this project would not benefit customers. In December 2012, the MPUC voted unanimously that no party
had shown cause to prevent termination of the EPU CON. The MPUC is expected to issue an order terminating the EPU CON in
the first half of 2013.