3F0317-03, Annual Decommissioning and Irradiated Fuel Management Financial Status Report for 2016
| ML17087A256 | |
| Person / Time | |
|---|---|
| Site: | Crystal River  |
| Issue date: | 03/28/2017 |
| From: | Hobbs T Duke Energy Florida |
| To: | Document Control Desk, Office of Nuclear Reactor Regulation |
| References | |
| 3F0317-03 | |
| Download: ML17087A256 (9) | |
Text
Crystal River Nuclear Plant 15760 W. Power Line Street Crystal River, FL 34428 Docket 50-302 Docket 72-1035 Operating License No. DPR-72 10 CFR 50.82 10 CFR 50.75 March 28, 2017 3F0317-03 U.S. Nuclear Regulatory Commission Attn: Document Control Desk Washington, DC 20555-0001
Subject:
Crystal River Unit 3 - Annual Decommissioning and Irradiated Fuel Management Financial Status Report for 2016
References:
- 1. NRC to CR-3 letter dated March 13, 2013, Crystal River Unit 3 Nuclear Generating Plant Certification of Permanent Cessation of Operation and Permanent Removal of Fuel From the Reactor (ADAMS Accession No. ML13058A380)
- 2. CR-3 to NRC letter dated December 2, 2013, Crystal River Unit 3 - Post-Shutdown Decommissioning Activities Report (ADAMS Accession No. ML13340A009)
- 3. NRC to CR-3 letter dated January 26, 2015, Crystal River Unit 3 Nuclear Generating Plant - Exemptions from the Requirements of 10 CFR Part 50, Sections 50.82(a)(8)(i)(A) and 50.75(h)(2) (ADAMS Accession No. ML14247A545)
- 4. NRC to CR-3 letter dated March 11, 2015, Crystal River Unit 3 Nuclear Generating Plant Post-Shutdown Decommissioning Activities Report (ADAMS Accession No. ML14321A751)
- 5. NRC to CR-3 letter dated August 10, 2016, Crystal River Unit 3 Nuclear Generating Plant - Order Approving Transfer and Conforming Amendment (ADAMS Accession No. ML16173A019)
Dear Sir:
In accordance with 10 CFR 50.75(f)(1), 10 CFR 50.82(a)(8)(v), 10 CFR 50.82(a)(8)(vi), and 10 CFR 50.82(a)(8)(vii), Duke Energy Florida, LLC, (DEF) is submitting the annual status of decommissioning funding, status of funding for managing irradiated fuel, and the financial assurance status report for 2016. In Reference 1, the NRC acknowledged Crystal River Unit 3 Nuclear Generating Plant (CR-3) certification of permanent cessation of power operation and permanent removal of fuel from the reactor vessel. In Reference 2, DEF submitted its Post-Shutdown Decommissioning Activities Report (PSDAR) containing a
site-specific Decommissioning Cost Estimate (DCE) pursuant to 10 CFR 50.82(a)(4)(i) and 10 CFR 50.82(a)(8)(iii). Accordingly, a status of decommissioning funding pursuant to 10 CFR 50.75(f)(1), a financial assurance status report pursuant to 10 CFR 50.82(a)(8)(v) and 10 CFR 50.82(a)(8)(vi), and a report on the status of the funding for managing irradiated fuel pursuant to 10 CFR 50.82(a)(8)(vii) are required to be submitted by March 31 of each year.
U. S. Nuclear Regulatory Commission Page 2 of 3 3F0317-03 In Reference 3, the NRC provided its approval of the CR-3 exemption request to use the funds from the CR-3 Decommissioning Trust Funds for Irradiated Fuel Management and Site Restoration Costs. The financial assurance demonstration performed in this submittal has been prepared consistent with that exemption request. In Reference 4, the NRC found that the PSDAR contained the necessary information required by 10 CFR 50.82(a)(4)(i) and was consistent with the guidance of Regulatory Guide 1.185.
In Reference 5, the NRC approved a license transfer of the 1.6994 percent combined ownership share in CR-3 held by Seminole Electric Cooperative, Inc. co-owner to DEF. This leaves DEF as the sole owner of CR-3.
The attachments to this letter contain the information required by the above regulations for DEF.
The report contains the following required information:
(1)
The amount of decommissioning funds estimated to be required pursuant to 10 CFR 50.75(b) and (c), (While DEF is identifying this amount because it is specified in 10 CFR 50.75(f)(1), it does not appear applicable to a plant that has permanently ceased operation, has submitted a site specific cost estimate, and is engaged in decommissioning).
(2)
The amount of decommissioning funds accumulated to the end of the calendar year preceding the date of this report, (3)
A schedule of annual amounts remaining to be collected, (4)
The assumptions used regarding rates of escalation in decommissioning costs, rates of earnings on decommissioning funds, and rates of other factors used in funding projections, (5)
Any contracts upon which the licensee is relying pursuant to 10 CFR 50.75(e)(1)(v),
(6)
Any modifications occurring to a licensees current method of providing financial assurance since the last submitted report, (7)
Any material changes to trust agreements or financial assurance contracts, (8)
The amount spent on decommissioning, both cumulative and over the previous calendar year, (9)
The remaining balance of any decommissioning funds, (10) The amount provided by other financial assurance methods being relied upon, (11) An estimate of the costs to complete decommissioning, reflecting any difference between actual and estimated costs for work performed during the year, (12) The decommissioning criteria upon which the estimate is based, (13) If the sum of the balance of any remaining decommissioning funds, plus earnings on such funds calculated are not greater than a 2 percent real rate of return, together with the amount provided by other financial assurance methods being relied upon, does not cover the estimated costs to complete the decommissioning, the financial assurance status report must include additional financial assurance to cover the estimated cost of completion, (14) The amount of funds accumulated to cover the cost of managing the irradiated fuel, (15) The projected cost of managing irradiated fuel until title to the fuel and possession of the fuel is transferred to the Secretary of Energy, and (16) If the funds accumulated do not cover the projected cost (of irradiated fuel), a plan to obtain additional funds to cover the cost.
U.S. Nuclear Regulatory Commission 3F0317-03 Page 3 of 3 The adjustment factors for labor rates and energy costs used in Item ( 1) for the calculation in 1 O CFR 50.75(c)(2) are determined using the December 2016 indices from the U.S. Department of Labor, Bureau of Labor Statistics. The adjustment factor for the cost of low-level waste burial charges used in Item (1) for the calculation in 10 CFR 50.75(c)(2) is determined using NUREG-1307, Revision 16, "Report on Waste Burial Charges."
There are no new regulatory commitments associated with this letter.
If you have any questions regarding this submittal, please contact Mr. Mark Van Sicklen, Licensing Lead, Nuclear Regulatory Affairs, at (352) 563-4795.
~in;er~y', iJM-TerryH~
General Manager, Decommissioning TDH/mvs Attachments: - Duke Energy Florida, Crystal River Unit 3 Funding Status Report - Crystal River Unit 3, Estimate of Costs to Complete Decommissioning and Financial Assurance Demonstration xc:
NMSS Project Manager Regional Administrator, Region I
DUKE ENERGY FLORIDA, LLC DOCKET NUMBER 50 - 302 / LICENSE NUMBER DPR - 72 ATTACHMENT 1 DUKE ENERGY FLORIDA, CRYSTAL RIVER UNIT 3 FUNDING STATUS REPORT
, Page 1 of 2 Footnotes next page Crystal River Item #
Unit 3 10 CFR 50.75(f)(1) - Status of decommissioning funding 1
1a. The amount of decommissioning funds estimated to be required pursuant to 10 CFR 50.75(b) and (c);
451,687,566 1b. The amount of decommissioning funds estimated to be required for 821,185,432 1
remaining License Termination costs.
2 The amount of decommissioning funds accumulated to the end of the 722,083,733 2,3 calendar year preceding the date of the report; 3
A schedule of the annual amounts remaining to be collected; None 4
The assumptions used regarding rates of escalation in decommissioning inflation 2.8% 4 costs, rates of earnings on decommissioning funds, and rates of other qualified rate of return 5.10% 4 factors used in funding projections; 5
Any contracts upon which the licensee is relying pursuant to None paragraph 10 CFR 50.75(e)(1)(v);
6 Any modifications occurring to a licensee's current method of providing None financial assurance since the last submitted report; and 7
Any material changes to trust agreements.
None 10 CFR 50.82(a)(8)(v) - Financial assurance status report 8
(A) The amount spent on decommissioning, both cumulative and over the 23,650,676 5
- Previous calendar year previous calendar year, 67,655,152 6
- Cumulative 9
The remaining balance of any decommissioning funds, and 722,083,733 2,3 10 The amount provided by other financial assurance methods being relied upon; None 11 (B) An estimate of the costs to complete decommissioning, reflecting any See Attachment 2 difference between actual and estimated costs for work performed during the year, and 12 The decommissioning criteria upon which the estimate is based; Unrestricted Release 13 (C) Any modifications occurring to a licensee's current method of providing financial assurance since the last submitted report; and None 14 (D) Any material changes to trust agreements or financial assurance contracts.
None 10 CFR 50.82(a)(8)(vi) 15 10 CFR 50.82(a)(8)(vii) - Report on the status of funding for managing irradiated fuel 16 (A) The amount of funds accumulated to cover the cost of managing the irradiated fuel; 17 (B) The projected cost of managing irradiated fuel until title to the fuel See Attachment 2 and possession of the fuel is transferred to the Secretary of Energy; and 18 If the sum of the balance of any remaining decommissioning funds, plus earnings on such funds calculated at not greater than a 2 percent real rate of return, together with the amount provided by other financial assurance methods being relied upon, does not cover the estimated cost to complete the decommissioning, the financial assurance status report must include additional financial assurance to cover the estimated cost of completion.
As demonstrated in Attachment 2, funds accumulated cover estimated cost of completion.
As demonstrated in Attachment 2, funds accumulated cover estimated cost of completion.
(C) If the funds accumulated do not cover the projected cost, a plan to obtain additional funds to cover the cost.
As demonstrated in Attachment 2, funds accumulated cover projected cost of managing irradiated fuel, with the noted exception of DEF's portion of ISFSI capital construction costs as described in the update to Irradiated Fuel Management Program pursuant to 10CFR50.54(bb) (ADAMS Accession No. ML13440A008).
NRC Decommissioning Funding Status Report Report Dated as of December 31, 2016 Duke Energy Florida Crystal River Unit 3 100% Ownership
, Page 2 of 2 Footnotes:
6 Represents the cumulative amount actually disbursed from the fund as of December 31, 2016 for License Termination costs, not the cumulative costs incurred as of December 31, 2016. The Note applicable to Column A in Attachment 2 identifies the total amount of 2016 License Termination costs that have not been disbursed from the funds as of December 31, 2016.
1 Total amount of License Termination costs (Column A) in Attachment 2.
2 Amount is net of 2016 tax obligations.
3Represents (a) the full fund balance of DEF's qualified and non-qualified decommissioning funds, which, in accordance with the NRC exemption request approval (ADAMS Accession No. 14247A545), can also be used for Spent Fuel Management and Site Restoration costs, and (b) 100% of the funds held by the City of Tallahassee on behalf of DEF, which pursuant to NRC order (ADAMS Accession No. ML020670117) will only be used for NRC radiological decommissioning.
4 Represents values approved by the Florida Public Service Commission in Order No. PSC-14-0702-PAA-EI, issued December 22, 2014, which became effective and final pursuant to Order No. PSC-15-0067-CO-EI, issued on January 23, 2015.
5 Represents the amount actually disbursed from the fund in calendar year 2016 for License Termination costs, not the costs incurred in calendar year 2016.
The Note applicable to Column A in Attachment 2 identifies the total amount of 2016 License Termination costs that have not been disbursed from the funds as of December 31, 2016.
DUKE ENERGY FLORIDA, LLC DOCKET NUMBER 50 - 302 / LICENSE NUMBER DPR - 72 ATTACHMENT 2 CRYSTAL RIVER UNIT 3, ESTIMATE OF COSTS TO COMPLETE DECOMMISSIONING AND FINANCIAL ASSURANCE DEMONSTRATION
, Page 1 of 2 Footnotes next page Column A Column B Column C Column D Column E Column F Annual Expenses Annual expenses Annual expenses Total Expenses Projected Earnings End-of-year Fund Balances License Termination Cost (in thousands)
Spent Fuel Cost (in thousands)
Site Restoration Cost (in thousands)
Total Cost (in thousands)
Annual Earnings on Decommissioning Trust Fund at 2%
(in thousands)
All Owners Decommissioning Trust Fund Year-End Balance (in thousands) 2016 722,084 2017 100,160 27,255 0
127,415 13,168 607,836 2018 7,025 37,045 0
44,070 11,716 575,482 2019 6,471 24,415 0
30,886 11,201 555,797 2020 5,607 4,755 0
10,362 11,012 556,447 2021 5,591 4,742 0
10,333 11,026 557,140 2022 5,591 4,742 0
10,333 11,039 557,846 2023 5,591 4,742 0
10,333 11,054 558,567 2024 5,607 4,755 0
10,362 11,068 559,272 2025 5,591 4,742 0
10,333 11,082 560,021 2026 5,591 4,742 0
10,333 11,097 560,785 2027 5,591 4,742 0
10,333 11,112 561,565 2028 5,607 4,755 0
10,362 11,128 562,330 2029 5,591 4,742 0
10,333 11,143 563,140 2030 5,591 4,742 0
10,333 11,159 563,967 2031 5,591 4,742 0
10,333 11,176 564,810 2032 5,607 4,755 0
10,362 11,193 565,640 2033 5,591 4,742 0
10,333 11,209 566,516 2034 5,591 4,742 0
10,333 11,227 567,410 2035 5,591 7,588 0
13,179 11,216 565,447 2036 5,607 6,890 0
12,497 11,184 564,135 2037 5,558 0
0 5,558 11,227 569,803 2038 5,558 0
0 5,558 11,340 575,585 2039 5,558 0
0 5,558 11,456 581,483 2040 5,573 0
0 5,573 11,574 587,484 2041 5,558 0
0 5,558 11,694 593,620 2042 5,558 0
0 5,558 11,817 599,878 2043 5,558 0
0 5,558 11,942 606,262 2044 5,573 0
0 5,573 12,070 612,758 2045 5,558 0
0 5,558 12,200 619,399 2046 5,558 0
0 5,558 12,332 626,173 2047 5,558 0
0 5,558 12,468 633,083 2048 5,573 0
0 5,573 12,606 640,116 2049 5,558 0
0 5,558 12,747 647,304 2050 5,558 0
0 5,558 12,890 654,636 2051 5,558 0
0 5,558 13,037 662,115 2052 5,573 0
0 5,573 13,187 669,728 2053 5,558 0
0 5,558 13,339 677,509 2054 5,558 0
0 5,558 13,495 685,445 2055 5,558 0
0 5,558 13,653 693,540 2056 5,573 0
0 5,573 13,815 701,782 2057 5,558 0
0 5,558 13,980 710,204 2058 5,558 0
0 5,558 14,148 718,794 2059 5,558 0
0 5,558 14,320 727,556 2060 5,573 0
0 5,573 14,495 736,478 2061 5,558 0
0 5,558 14,674 745,594 2062 5,558 0
0 5,558 14,856 754,892 2063 5,558 0
0 5,558 15,042 764,375 2064 5,573 0
0 5,573 15,232 774,034 2065 5,558 0
0 5,558 15,425 783,901 2066 5,558 0
0 5,558 15,622 793,965 2067 29,350 0
421 29,771 15,582 779,775 2068 66,698 0
1,360 68,058 14,915 726,632 2069 121,761 0
1,680 123,441 13,298 616,489 2070 92,562 0
1,028 93,590 11,394 534,293 2071 77,902 0
701 78,603 9,900 465,590 2072 52,165 0
273 52,438 8,787 421,939 2073 5,009 0
28,112 33,121 8,108 396,926 2074 96 0
18,654 18,750 7,751 385,927 Total1
$821,185
$174,371
$52,230
$1,047,787 Crystal River Unit 3 - Financial Assurance Demonstration December 31, 2016
, Page 2 of 2 Footnotes:
Column A - Annual Expenses - License Termination Cost - Reflects the License Termination cost portion of the Decommissioning Cost Estimate (DCE) escalated to 2016 dollars at the Consumer Price Index escalation rate of 1.7% for 2014, 0.1% for 2015 and 1.3% for 2016. The 2017 costs represent the sum of 2013 through 2017 costs from the DCE, less $67,655,152 of License Termination costs disbursed from the funds through December 31, 2016. Outstanding License Termination costs of $10,614,556 were not reimbursed as of December 31, 2016 due to outstanding joint owner reimbursements and November and December 2016 reimbursements. Reimbursement of these outstanding costs is expected after December 31, 2016.
Column B - Annual Expenses - Spent Fuel Management Cost - Reflects the Spent Fuel Management cost portion of the Decommissioning Cost Estimate (DCE) escalated to 2016 dollars at the Consumer Price Index escalation rate of 1.7% for 2014, 0.1% for 2015 and 1.3% for 2016. The 2017 costs represent the sum of 2013 through 2017 costs from the DCE, less $107,852,441 of Spent Fuel Management costs disbursed from the funds through December 31, 2016. Outstanding Spent Fuel Management costs of $8,459,278 were not reimbursed as of December 31, 2016 due to outstanding joint owner reimbursements and November and December 2016 reimbursements. Reimbursement of these outstanding costs is expected after December 31, 2016.
Notwithstanding the acquisition in 2015 and 2016 by DEF of co-owner ownership interests, the 2016 through 2018 costs continue to include ISFSI capital construction costs for the ownership interests of all co-owners (8.2194%) as of the submittal date of the Update to Irradiated Fuel Management Program pursuant to 10 CFR 50.54(bb) (ADAMS Accession No. ML13340A008). DEF will continue to fund the ISFSI capital construction costs for its ownership interest (91.7806%) as of the submittal date of the Update to Irradiated Fuel Management Program pursuant to 10 CFR 50.54(bb) (ADAMS Accession No. ML13340A008) in accordance therewith. Current projected ISFSI capital construction costs are now estimated to be $102M through 2018. Accordingly, these costs associated with the ownership interests of all co-owners (8.2194%) are included in the table above.
Column C - Annual Expenses - Site Restoration Cost - Reflects the Site Restoration cost portion of the Decommissioning Cost Estimate (DCE) escalated to 2016 dollars at the Consumer Price Index escalation rate of 1.7% for 2014, 0.1% for 2015 and 1.3% for 2016. Site Restoration costs of
$7,494,563 were incurred in 2013 through 2016, of which $7,357,059 has been reimbursed as of December 31, 2016. Reimbursement of the outstanding costs is expected after December 31, 2016. $2,139,772 of the reimbursed amount was related to Site Restoration costs contemplated in the DCE for the year 2074 and was therefore deducted from the 2074 costs in the table above.
Column D - Annual Expenses - Total Cost - Reflects the sum of the License Termination, Spent Fuel Management and Site Restoration costs.
Column E - Projected Earnings - Reflects earnings on funds remaining in the trusts. Pursuant to 10 CFR 50.82(a)(8)(vi), a 2% real rate of return is used in this financial analysis. The earnings are calculated on the previous year's end-of-year fund balance (Column F) less 50% of the given year's annual expenses.
Column F - End-of-year Fund Balances - Reflects the end-of year fund balance of all funds after all projected earnings are added and projected expenditures are deducted. The 2016 end-of-year fund balance includes 100% of $6,891,614 in funds held by the City of Tallahassee on behalf of Duke Energy Florida, which pursuant to NRC order (ADAMS Accession No. ML020670117) will only be used for NRC radiological decommissioning.
For the purposes of demonstrating financial assurance in accordance with 10 CFR 50.82(a)(8)(vi), the methodology and assumptions in this analysis are consistent with the March 28, 2014, Request for Exemption from 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(2) (ADAMS Accession No. ML14098A037),
which was approved by NRC on January 26, 2015 (ADAMS Accession No. ML14247A545).
1 Total may not add due to rounding.