Current through Register Vol. 49, No. 13, September 23, 2024
Subpart 1.
General requirement.
This part applies to an applicant or licensee that has a
rated bond issuance and wishes to self-guarantee. An applicant or licensee may
provide reasonable assurance of the availability of funds for decommissioning
based on furnishing its own guarantee that funds will be available for
decommissioning costs and on a demonstration that the company passes the
financial test under subpart 2. This part establishes criteria for passing the
financial test for the self-guarantee and establishes the terms for a
self-guarantee.
Subp. 2.
Financial test requirements.
To pass the financial test, a company must have:
A. tangible net worth at least ten times the
total current decommissioning cost estimate for the total of all facilities or
parts thereof, or the current amount required if certification is used, or, for
a power reactor licensee, at least ten times the amount of decommissioning
funds being assured by a self-guarantee, for all decommissioning activities for
which the company is responsible as a self-guaranteeing licensee and as a
parent-guarantor for the total of all reactor units or parts thereof. Tangible
net worth must be calculated to exclude the net book value of the nuclear
units;
B. assets located in the
United States amounting to at least 90 percent of total assets or at least ten
times the total current decommissioning cost estimate for the total of all
facilities or parts thereof, or the current amount required if certification is
used, or, for a power reactor licensee, at least ten times the amount of
decommissioning funds being assured by a self-guarantee, for all
decommissioning activities for which the company is responsible as a
self-guaranteeing licensee and as a parent-guarantor for the total of all
reactor units or parts thereof;
C.
a current rating for its most recent bond issuance of AAA, AA, or A as issued
by Standard and Poor's or Aaa, Aa, or A as issued by Moody's; and
D. at least one class of equity securities
registered under the Securities Exchange Act of 1934, United States Code, title
15, sections 78a to 78mm.
Subp.
3.
Audit.
A company's independent certified public accountant must
compare the data used by the company in the financial test, which must be
derived from the independently audited, year-end financial statements for the
latest fiscal year, with the amounts in such financial statements. In
connection with that procedure, the licensee must inform the commissioner
within 90 days of any matters coming to the attention of the auditor that cause
the auditor to believe that the data in the financial test should be adjusted
and that the company no longer passes the test.
Subp. 4.
Continued compliance.
A. After the initial financial test, a
company must repeat passage of the test within 90 days after the close of each
succeeding fiscal year.
B. If a
licensee no longer meets the requirements of subpart 2, the licensee must send
immediate notice to the commissioner of its intent to establish alternate
financial assurance according to this chapter within 120 days of the
notice.
Subp. 5.
Terms of guarantee.
The terms of a self-guarantee that an applicant or licensee
furnishes must provide that:
A. the
guarantee remains in force unless the licensee sends notice of cancellation by
certified mail to the commissioner. Cancellation may not occur, however, during
the 120 days beginning on the date of receipt of the notice of cancellation by
the commissioner, as evidenced by the return receipt;
B. the licensee must provide alternative
financial assurance according to this chapter within 90 days following receipt
by the commissioner of a notice of cancellation of the guarantee;
C. the guarantee and financial test
provisions remain in effect until the commissioner terminates the license or
until another financial assurance method acceptable to the commissioner is put
in effect by the licensee;
D. the
licensee must promptly forward to the commissioner and the licensee's
independent auditor all reports covering the latest fiscal year filed by the
licensee with the Securities and Exchange Commission according to section 13 of
the Securities Exchange Act of 1934, United States Code, title 15, section
78m;
E. if, at any time, the
licensee's most recent bond issuance ceases to be rated in any category of A or
above by either Standard and Poor's or Moody's, the licensee must provide
notice in writing of such fact to the commissioner within 20 days after
publication of the change by the rating service. If the licensee's most recent
bond issuance ceases to be rated in any category of A or above by both Standard
and Poor's and Moody's, the licensee no longer meets the requirements of
subpart 2; and
F. the applicant or
licensee must provide to the commissioner a written guarantee (a written
commitment by a corporate officer) that states that the licensee shall fund and
carry out the required decommissioning activities or, upon issuance of an order
by the commissioner, the licensee shall set up and fund a trust in the amount
of the current cost estimates for decommissioning.