Xcel Energy 2014 Annual Report Download - page 28

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In November 2013, the U.S. Court of Appeals ordered the DOE to suspend the collection of the nuclear waste fund fee from nuclear
utilities and to recommend to Congress that the nuclear waste fund fee be set to zero. In January 2014, the DOE sent its court
mandated proposal to adjust the current fee to zero, which Congress approved in May 2014.
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. 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. 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. See Note 13 and Note 14 to
the consolidated financial statements for further discussion.
Nuclear Spent Fuel Storage
NSP-Minnesota has interim on-site storage for spent nuclear fuel at its Monticello and PI nuclear generating plants. As of Dec. 31,
2014, there were 38 casks loaded and stored at the PI plant and 15 canisters loaded and stored at the Monticello plant. An additional
26 casks for PI and 15 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 operating licenses in 2030 for Monticello, 2033 for PI
Unit 1, and 2034 for PI Unit 2. Authorizations for additional spent fuel storage capacity may be required at each site to support either
continued operation or decommissioning if the federal government does not begin operation of a consolidated interim storage
installation by the time frames established in the DOE’s Strategy for the Management and Disposal of Used Nuclear Fuel and High-
Level Radioactive Waste issued in January 2013.
PFS — The eight partners of PFS, including NSP-Minnesota, have withdrawn their license termination request from the NRC and
have stopped activities to dissolve the LLC. This action was taken when the NRC changed its fee rules to no longer require certain
licensees like PFS to pay annual fees until their facility becomes operational. PFS is currently reviewing its plans for the future.
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 EIS if there are significant impacts
or an environmental assessment to support a finding of no significant impact. In September 2014, the NRC published a Generic
Environmental Impact Statement (GEIS) and revised WCD rule, now called the Continued Storage Rule (CSR) on the temporary on-
site storage of spent nuclear fuel. Issuance of the CSR now allows the NRC to proceed with final license decisions regarding the new
and renewal of plant and Independent Spent Fuel Storage Installation (ISFSI) operating licenses without the need to litigate
contentions related to the continued storage of spent nuclear fuel on-site. This may facilitate potential future licensing needs for NSP-
Minnesota.
See Notes 13 and 14 to the consolidated financial statements for further discussion regarding nuclear related items.
Nuclear Plant Power Uprates and Life Extension
PI ISFSI License Renewal — The current license to operate an ISFSI at PI expired 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. As PI met the
NRC’s criteria for timely renewal, it will be allowed to continue to operate under the current license until the NRC has rendered a
decision on the license renewal application. The NRC’s ASLB will establish a schedule for the hearing which should be completed by
the second half of 2015.
Monticello Nuclear Uprate Project — NSP-Minnesota has received all federal and state approvals that are necessary and has
completed all of the plant modifications to achieve the 71 MW capacity Monticello Nuclear Uprate Project and is in the process of
completing the power ascension testing required by the NRC. Operation at the full increased power level is expected in the first half
of 2015. As of Dec. 31, 2014, Monticello was operating at 656 MW, which includes approximately 56 MW of the extended uprate
capacity. See Note 12 to the consolidated financial statements for further discussion.