L-09-318, Supplemental Information for Decommissioning Funding Report
| ML093380293 | |
| Person / Time | |
|---|---|
| Site: | Beaver Valley |
| Issue date: | 11/24/2009 |
| From: | Hagan J FirstEnergy Nuclear Operating Co |
| To: | Document Control Desk, Office of Nuclear Reactor Regulation |
| References | |
| L-09-318, TAC ME0487 | |
| Download: ML093380293 (5) | |
Text
FENOC 76 South Main Street FirstEnergy Nuclear Operating Company Akron, Ohio 44308 Joseph J. Hagan 330-761-7895 President and Chief Nuclear Officer Fax: 330-384-5669 November 24, 2009 L-09-318 10 CFR 50.75 ATTN: Document Control Desk U. S. Nuclear Regulatory Commission Washington, DC 20555-0001
SUBJECT:
Beaver Valley Power Station, Unit No. 1 Docket No. 50-334, License No. DPR-66 Supplemental Information for the Beaver Valley Power Station, Unit No. 1 Decommissioning Funding Report,(TAC. Noý.,ME0487)Y:.,
Pursuant. to10 CF.R 50.75(0(1),,on March027;,2009;, the, FirstEnergy Nuclear Operating Company,,(FENOC),,on behalf of.the subsidiaries of the FirstEnergy Corp. (FE):-i, submitted the biennial: Decommissioning Funding..Reports for:the Beaver Valley -Power Station, Unit Nos. 1. and, 2, the, Davis-Besse Nuclear, Power Station, and the Perry Nuclear Power Plant (Agencywide Documents Access and Management System
[ADAMS] Accession No. ML090970287). The NRC issued a letter, dated June.18, 2009 (ADAMS Accession No. ML091690470), indicating that the NRC believed there was a shortfall in.the decommissioning funding for Beaver.Valley Power Station, Unit No. 1. By letter dated July 8, 2009 (ADAMS Accession No. ML091870757),: the NRC requested FENOC to submit a plan which provides assurance of adequate. decommissioning funding for Beaver Valley Power Station, Unit No. I on or before July 31, 2009.
FENOC responded to -the NRC request by letter, dated July 28, 2009 (ADAMS Accession No. ML092120553),-which provided a site-specific SAFSTOR. analysis for the Beaver Valley.Power Station,. Unit No. 1.
On October 8, 2009, a teleconference was heldjto discuss a potential request for additional information (RAI) associated with the site-specific SAFSTOR::analysis.,,.
During the teleconferenice, FENOC indicated that due to a number.of factors,,.FENOC was evaluatind the methods.to'.pr-vide assuranceof adequatedeceommissioning.:-I:
fundi ng for Beaver Va Iey Power Stat Ion, Unit No. 1. On October 20, 2009, FENOC received a letter from the NRC (ADAMS Accession No. ML092880811), that provided the RAI discussed during the October. 8 teleconference.
Beaver Valley Power Station, Unit No. 1 L-09-318 Page 2 On November 5, 2009, the NRC approved a renewal of the operating license for Beaver Valley Power Station, Unit No. 1 for 20 years. As a result of this action, FENOC used the NRC formula method to recalculate the required decommissioning funding for Beaver Valley Power Station, Unit No. 1 for the extended license period. With this change in method, the questions contained in the RAI, which pertain to the SAFSTOR analysis are no longer germane to FENOC's decommissioning funding assurance plan for Beaver Valley Power Station, Unit No. 1. A revised decommissioning funding analysis, based on the NRC formula method, is provided as an attachment in lieu of a response to the RAI questions.
Based upon the value of the trust fund assets as of October 31, 2009, the trust fund provides assurance of adequate decommissioning funding for Beaver Valley Power Station, Unit No. 1. Though the analysis indicates a shortfall of approximately
$2 million, this value is considered de minimis. However, there continues to be $80 million in additional assurance available under an existing FE Parent Guaranty.
In accordance with 10 CFR 50.75, FENOC will re-assess the status of decommissioning funding assurance for all of its units during the first quarter 2010. At that time, FENOC may request NRC approval to make adjustments to the FE Parent Guaranty, or eliminate it, if appropriate.
There are no regulatory commitments contained in this letter. If there are any questions, or if additional information is required, please contact Mr. Thomas A. Lentz, Manager -
Fleet Licensing, at (330) 761-6071.
Sincerely, Joseph J. Haga Attachment Decommissioning Funding Status Report - Beaver Valley Power Station, Unit No. 1 cc:
NRC Region I Administrator NRC Resident Inspector NRR Project Manager Director BRP/DEP Site BRP/DEP Representative
Attachment L-09-318 Decommissioning Funding Status Report - Beaver Valley Power Station, Unit No. 1 Page 1 of 3 Plant Name:
Year of Biennial:
Termination of Operations Beaver Valley Power Station, Unit No. 1 2009 2036 Assumptions:
License Extension Burial Factor - Year End 2008 Actual Labor - 3rd Quarter 2009 Actual Energy - September 2009 Preliminary 2900 MWth Trust Value As of October 31, 2009 Note:
Applicable to the attachment. Due to mathematical rounding performed by the EXCEL spreadsheet, some of the values may be slightly different if hand calculations are performed.
Summary of Funding Analysis Total Assets (Steps 1 -3) 397,952,254 399,989,023 Total Liability Net Surplus / (Short Fall)
(2,036,769)
Parental Guaranty Incremental Guaranty Remaining Guaranty 80,000,000 77,963,231
Attachment L-09-318 Page 2 of 3 LIABILITY CALCULATION For PWR Unit Adjustment Factor Ratio Escalation Factor L =
2.391 0.65 1.554 E =
1.947 0.13 0.253 B=
9.872 0.22 2.172 PWR Escalation Factor 3.979 Escalated Amount for Unit =
$ 100,520,000 X
3.979
$ 399,989,023 ASSET CALCULATION Step 1:
Earnings Credit Trust Fund Balance:
Real Rate of Return per year:
Years Left in License Total Real Rate of Return:
Total Earnings:
$220,258,952 2%
26.25 1.681723174
$ 370,414,584 Step 2:
Accumulation:
Real Rate of Value of Annuity Ra aeo pValer year:
Return per Year of Annuity:
Total Annuity:
year:
2%
0.00 Step 3:
Decom Period:
Total Earnings:
Real Rate of Decommissioning Total Real Rate Total Earnings for Return Period:
of Return Decommissioning:
$ 370,414,584 2%
7.00 0.148685668
$ 27,537,670 Total of Steps 1-3:
$ 397,952,254
Attachment L-09-318 Page 3 of 3 SUPPORTING CALCULATIONS 1986 $
Base Amount for PWR between 1200 MWt and 3400 MWt = ($75 = 0.0088P)
(P = power level in megawatts thermal = 2,900)
($75 + 0.0088(2,900)) million =
$100,520,000 MW Capacity 2,900 Energy Factor P (September 2009)
F ( September 2009)/
Step 1.0 P (January 1986)
F (January 1986) 1.71 2.28 January 1986 114.2 82.0 September 2009 194.8 187.0 Step 2.0 PWR E = 0.58P + 0.42F E = 1.947 Labor Factor 3ra Quarter Region Base Labor 2009 Current Labor (L)
Adjustment Factor Index Adjustment (December 2005)
Value Factor Northeast 2.16 110.70 2.39 Burial Factor Year End 2008 PWR Generic Site Direct Disposal 25.231 Waste Vendor 9.872