Jul 16 - McClatchy-Tribune Regional News - Bob Bauder Beaver County Times, Pa.


FirstEnergy Corp. has projected a $67.5 million deficit in a federally mandated fund that would be tapped for site cleanup in the event that its Beaver Valley Unit 1 reactor is decommissioned.

However, FirstEnergy fully expects to make up the shortfall before the reactor's license expires in 2016, a company representative said. The company is applying for a 20-year license extension.

"We're formulating a response that will indicate Beaver Valley Unit 1's decommissioning costs will be fully funded when the original license expires in 2016," spokesman Todd Schneider said.

FirstEnergy operates two reactors at the Beaver Valley Nuclear Power Station in Shippingport. The decommissioning fund for Unit 2 is fully funded, the Nuclear Regulatory Commission reported.

However, the fund for Unit 1 is projecting a $67.5 million shortfall.

Schneider said the money is invested in markets that the ongoing national recession impacted.

U.S. Nuclear Regulatory Commission spokesman Neil Sheehan said all nuclear power stations are required to have money set aside to cover costs of site cleanup following a decommissioning. An NRC formula determines the amount that must be maintained.

Sheehan said 18 other nuclear plants around the nation also have shortfalls in their decommissioning funds, mainly due to the economy.

The NRC calculates that FirstEnergy must have about $396.3 million in the Unit 1 fund, but projections indicate it will amount to $328.8 million.

The NRC has given FirstEnergy until month's end to come up with a plan for replenishing the fund.

"We'll review that and determine whether or not we believe it's satisfactory," Sheehan said. "If not, we can direct them to come up with another approach."

Bob Bauder can be reached online at bbauder@timesonline.com.

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